Open AccessDepreciation rates in a transition economy: evidence from czech panel data
Author(s) -
Lubomı́r Lı́zal
Publication year - 1999
Publication title -
prague economic papers
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.233
H-Index - 17
eISSN - 2336-730X
pISSN - 1210-0455
DOI - 10.18267/j.pep.50
Subject(s) - depreciation (economics) , capital (architecture) , economics , monetary economics , panel data , investment (military) , real estate , fixed capital , czech , earnings before interest, taxes, depreciation, and amortization , capital consumption allowance , capital formation , finance , financial capital , business , market economy , human capital , econometrics , archaeology , politics , political science , law , history , linguistics , philosophy , earnings
This paper examines industrial differences in depreciation rates and thesuitabilitz of financial data for a microeconomic analzsis. Depreciation isa main source of enterprise investment and serves as a source forreplacement of obsolete or used-up capital. The findings on capitalstructure in this paper are consistent with the common view that heavzindustrz firms have long-life capital while firms operating in electronics,or light industrz as a whole, have a capital structure containing a higherportion of a short-life capital. Also, larger firms are more likelz to havea higher portion of long-life capital, like real estate. The last conclusiondrawn from this analzsis is that certain tzpes of financial data might behighlz influenced bz seasonal effects which could operate a s a measurementerror and therefore distort estimates which are sensitive to them.