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ESTIMATION OF THE DEPRECIATION RATE OF PHYSICAL AND R&D CAPITAL IN THE U.S. TOTAL MANUFACTURING SECTOR
Author(s) -
Nadiri M. Ishaq,
Prucha Ingmar R.
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.tb01363.x
Subject(s) - depreciation (economics) , economics , capital consumption allowance , physical capital , capital (architecture) , consumption of fixed capital , production (economics) , productivity , estimation , fixed capital , total factor productivity , econometrics , monetary economics , microeconomics , capital formation , macroeconomics , financial capital , human capital , market economy , profit (economics) , archaeology , management , history
Numerous studies on production and cost, the sources of productivity, and endogenous growth have recognized the pivotal role played by physical and R&D capital stocks. Analysis of the contributions of these capitals often requires measures of the stocks of physical and R&D capital, which in turn requires measuring their depreciation rates. In this paper we specify a model of factor demand that allows us to estimate the depreciation rates of both physical and R&D capital jointly with other model parameters. The model is estimated for the U.S. total manufacturing sector.