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Depreciation Rates and Capital Stocks
Author(s) -
Abadir Karim,
Talmain Gabriel
Publication year - 2001
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/1467-9957.00234
Subject(s) - economics , depreciation (economics) , consumption of fixed capital , investment (military) , fixed capital , net capital rule , stock (firearms) , monetary economics , fixed investment , capital (architecture) , econometrics , macroeconomics , financial economics , capital formation , capital flows , microeconomics , financial capital , profit (economics) , mechanical engineering , archaeology , politics , political science , law , history , engineering
Suppose we have observations ranging over t =0,1,..., T on real net investment and on real gross investment . We derive a method of calculating the depreciation rate for each of the periods and of estimating ‘the’ implied net capital stock . We then provide empirical examples of the procedure and analyse the results.