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general government net worth (H6) The fixed capital stock of central or local government less its net financial liabilities. This BALANCE SHEET approach to the study of government finance has been suggested as a framework for assessing a government's ability to sustain its economic policies. It also has the useful function of making governments distinguish productive investments from debt servicing.
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rate of return (GO, M2)<br />The ratio of the earnings from an asset to the value of that asset, usually expressed as a percentage. Companies calculate this as the ratio of pre-tax profit to the capital employed. Private and social rates of return of HUMAN CAPITAL and of major public investments are often calculated. An alternative measure is the INTERNAL RATE oF RETURN which takes into account the timing of earnings.
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