The purpose of this paper is to discuss the development of themeasures of capital input in current and constant prices for each ofthe thirty sectors in Japan for the period 1960-1979. In accordancewith the methodological formulation developed in our study, the translogindex framework is applied to accomplish the task.Our analytical framework requires the flow of productive servicesprovided by capital assets to be separated between quantity of the flowof services and the service (rental) price per unit of flow. If weobserve the amount of capital service time utilized, say machine hours, andthe rental rate per machine hour, then the measurement of sectoral capitalinput would be a relatively straightforward task. The markets for capitalinputs, however, are asymmetric to labour markets in that the demand side(the users of capital services) and the supply side (the suppliers ofcapital services) are not in general distinguishable. Particularly inJapan, evidence suggests that most capital inputs are owner-utilized.And for those markets where the distinction between the owners' capitalassets and the users of capital services can be made, data on market serviceprices and quantity flows are only sparsely available.The lack of explicit capital service price and quantity in the market'requires a methodological framework that enables us to impute these flowvariables. We can infer the level of capital input from the level ofcapital stock.We should begin the measurement of sectoral capital input by estimatingthe stock levels of various capital assets in each sector. The methodologicalframework for the measurement of sectoral capital input and capitalstock is discussed in measurement procedure Section 2.and the dataSection source 3 discusses in detail the for sectoral capital stocks.

This report is a prelimanary report in theco-research project, 'Energy and Economi cGrowth in the United States and Ja p an', whichis processing between Keio Economic Observ a toryand Harvard. Please do not quote withoutpermission of the authors.