Investopedia

Continue to Site »

Capital Consumption Allowance - CCA

Filed Under » , ,
Dictionary Says

Definition of 'Capital Consumption Allowance - CCA'

The amount of money a country has to spend each year to maintain its present level of economic production. The capital consumption allowance (CCA) is calculated as a percentage of gross domestic product (GDP). The percentage of GDP that is not allocated to the CCA is called net domestic product and represents investment spending. CCA is also sometimes referred to as depreciation.
Investopedia Says

Investopedia explains 'Capital Consumption Allowance - CCA'

A CCA that is too high a percentage of GDP indicates poor economic growth. This situation occurred in the United States during the Great Recession of 2008. Before the recession, investment spending was $889 billion. By 2009, it had declined 94% to $54 billion from its peak in 2006. Meanwhile, the CCA in 2009 was $1.46 trillion, or about 92% of GDP.

Articles Of Interest

  1.

    Standard Of Living Vs. Quality Of Life

    What is the difference between a standard of living and quality of life? Find out in this breakdown.

  2. How To Use Gross National Product As An Indicator

    Learn what the GNP truly represents, and how its misuse can manipulate the facts.

  3. What is GDP and why is it so important?

    The gross domestic product (GDP) is one the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a ...

  4. Why The Consumer Price Index Is Controversial

    Find out why economists are torn about how to calculate inflation.

  5. Lessons Learned From the Banking Crisis

    There are lessons to be learned on how to handle severe financial downturns, and while the Fed is learning, politicians may not be.

  6. Inspecting A Country's Debt

    Tensions over just how to handle debt are pitting the rich world against the developing world like never before.

  7. Other Options For The Cyprus Bailout

    Find out the other options Cyprus could use to resolve it's financial troubles, since its proposal to tax bank deposits didn't work out.

  8. U.S. Vs. China: Battle To Be The Largest Economy In The World

    America's lengthy title reign as "World's Largest Economy" is fast under threat by China's surging economic growth. Find out what the global rankings are forecasted to be for these economic powerhouses. ...

  9. The Cyprus Crisis 101

    Discover what's behind the Cyprus debacle and what investors should do about the situation.

  10. All The Cliffs You Need To Know About

    In addition to the oft-cited fiscal cliff, there are economic, tax, political, geopolitical and earnings pitfalls to avoid.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  2. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  3. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  4. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.

  5. Angelina Jolie Stock Index

    An index made up of a selection of stocks from companies associated with actress Angela Jolie.

  6. Consequential Loss

    The amount of loss incurred as a result of being unable to use business property or equipment.
Trading Center