Issues in Valuing Cultural and Heritage Capital in the National Accounts

Many cultural and heritage assets are not recorded in national accounts, yet the capital services they provide can create economic value. This paper discusses the challenges in trying to incorporate this ‘missing capital’, including the absence of market prices or exchange values for many cultural and heritage assets, the presence of externalities, and the need for sufficiently clear definitions and classifications. While consistency with the approach taken in the national accounts requires the use of exchange values for cultural and heritage capital, measuring its social value – as part of inclusive wealth in the ‘Beyond GDP agenda – requires the use of accounting or shadow prices.