ABSTRACT
Savings and investment levels are critical predictors of an economy’s production. Changes in manufactured capital are measured by traditional investment measures. “Adjusted net or genuine saving measures a country’s true level of saving”. This “real level” represents changes in the whole capital stock of an economy or the “productive base,” as defined by Arrow. The productive base is defined by Arrow as “society’s capital assets and institutions”. The studies by Arrow, Hamilton, and Hamilton and Clemens calculated genuine savings (investment) for a variety of countries and regions and found significant disparities around the world. Investment saving measures provides crucial insight into a country’s long-term growth potential. In the studies cited above, the importance of organizations and governance on spending time is not taken into account. Instead, they concentrate on determining the specific components of true savings. This includes both the theoretical and practical aspects of the estimation process. This chapter will look at how governments realize how people spend their time in energy-rich countries.
