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EMPIRICAL STUDIES OF DEPRECIATION
Author(s) -
Jorgenson Dale W.
Publication year - 1996
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1996.tb01362.x
Subject(s) - depreciation (economics) , economics , consumption of fixed capital , asset (computer security) , empirical research , quality (philosophy) , product (mathematics) , econometrics , microeconomics , key (lock) , vintage , econometric model , financial economics , macroeconomics , computer science , profit (economics) , financial capital , capital formation , archaeology , history , philosophy , geometry , computer security , mathematics , epistemology
This paper surveys empirical research on depreciation based on an econometric model of asset prices introduced by Hall in 1971 and shows how Hall's model provides a vehicle for unifying research on constant quality price indices and depreciation. An additional objective of the paper is to illustrate the use of this research in constructing an integrated system of income, product, and wealth accounts. A system of vintage accounts, like that originated by Christensen and Jorgenson in 1973, is the key to successful integration.