One objectives of this research is to continue the development of adjusted and extended measures of macroeconomic variables and their application to major issues of economic theory and policy. The measures will relate to budget and balance of payments surpluses and deficits, public, private and national saving, foreign and domestic tangible investment, market and nonmarket output and stocks of capital and wealth. New data sets will be developed and made available for public use. The other objective of this project is to analyze the determinants and interrelations of broader measures of saving, investment and output and their components. Possible equilibrating mechanisms with regard to budget deficits and balance of payment capital accounts will be explored through simulations and empirical estimation. Particular attention will be paid to the social security system and the effects of public investment in human and nonhuman capital on private investment and output. The analysis will extent to major developed countries as well as developing countries, making use of adjusted budget data and market price and replacement cost indices to introduce current value estimates of capital and wealth. This research is important because it will provide a better understanding of international indebtedness and economic growth.
