The figure is a line chart titled “Physical Capital Investment Rate.” The graph plots the following physical capital investment rates — Compustat: average; Compustat: aggregate; and BEA. The y-axis ranges from 7 to 16 percent, and the x-axis spans the years 1987 to 2015. Collectively, the three series in 1987 were around 12 to 14 percent. By 2015, all three series declined to around 10 to 11 percent. Source: Crouzet N, Eberly J. NBER Working Paper 25869
The two Compustat investment rates reported are the industry-wide average (dark gray line) and the ratio of industry total capital expenditures to industry total property, plant and equipment (light gray line). In the BEA data, investment is defined as the ratio of investment in physical assets to their replacement cost.