software & investment

Doug Henwood dhenwood at
Sun Aug 29 11:10:56 PDT 1999

Well it turns out the revisions of U.S. GDP to be published in October will include software as business investment (which does appear in GDP) and not an intermediate cost (which doesn't). This will have the effect of adding about 1.5 percentage points to GDP. They estimate the useful life of software at 3-5 years, which is how it will be depreciated.

This, and other revisions, are explained in an article in the August issue of the Survey of Current Business <>.


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