Is there a useful principle for determining appropriate aggregate Federal investment in Federal assets?
In non-Federal assets? The categorization of investment that most affects analysis of the appropriate amount of investment is by ownership. The Government invests in federally owned assets that are combined with other inputs to produce Federal services, and it finances investment in assets that it does not own that add directly to the wealth and well-being of the Nation. Investment in federally owned physical capital is 29 percent of Federal investment. This capital is combined with other inputs, including labor and support services, to produce the goods, services, transfers, grants, and credit that the Federal Government provides to the public in carrying out Federal missions. The goal in selecting such investments is to produce each funded service as efficiently and effectively as possible; there is no reason why capital-intensive operations are always better. Moreover, although the Federal cost of capital is always lower, it is sometimes efficient to lease capital for short-term use
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