Net National Value (NNV) Project August 20, 2010 Papic/Powers/Reinfrank/Stech/Preisler

INTRODUCTIONINTRODUCTION

MethodologyMethodology

• Two Key Studies:– World Bank, Where is the Wealth of Nations.

Kirk Hamilton, et al. 2006. – United Nations,

Estimating the Level and Distribution of Global Household Wealth. James B. Davies, et al. 2007.

• Two STRATFOR variables: – Military assets (Powers);– Financial assets (Reinfrank).

Where is the Wealth of NationsWhere is the Wealth of Nations

• Two Key Methods: – Net Present Value (NPV);– Perpetual Inventory Model (PIM).

Where is the Wealth of Nations Where is the Wealth of Nations (cont.)(cont.)

Variables Covered by World Variables Covered by World Bank StudyBank Study

• NATURAL CAPITAL:– Subsoil Assets– Timber Resources– NTFR – Cropland– Pastureland – PA – Protected Areas

• PRODUCED CAPITAL: – Machinery, Equipment and Structures– Urban Land

Variables Covered by UNVariables Covered by UN

• Household Assets– Financial Assets (stocks,

retirement funds, etc.) – Non-Financial Assets (housing)– Durable goods at their present

value.

Variables Covered by Variables Covered by STRATFORSTRATFOR

• Military Assets (Powers)• Financial Assets – Stock Market

Capitalizations (Reinfrank)

Conclusion on VariablesConclusion on Variables

• Double counting? Overlap? – SOME

• Perfect? – NO

• Standardized across countries?– MOSTLY

RESULTSRESULTS

More DataMore Data

And… Moooore DataAnd… Moooore Data

FinFin

Questions?Questions?