Depreciation Rates and Capital Stocks

The Manchester School, Vol. 69, No. 1, pp. 42-51, January 2001

15 Pages Posted: 15 Jan 2012

See all articles by Karim M. Abadir

Karim M. Abadir

Imperial College Business School

Gabriel Talmain

University of York - Department of Economics and Related Studies

Date Written: February 14, 2001

Abstract

Suppose we have observations ranging over t=0,1,…T on real net investment, {I_{n,t}}₀^{T}, and on real gross investment, {I_{g,t}}₀^{T}. We derive a method of calculating the depreciation rate for each of the periods {δ_{t}}₁^{T}, and estimating `the' implied net capital stock {K_{t}}₀^{T}. We then provide empirical examples of the procedure, and analyse the results.

Suggested Citation

Abadir, Karim M. and Talmain, Gabriel, Depreciation Rates and Capital Stocks (February 14, 2001). The Manchester School, Vol. 69, No. 1, pp. 42-51, January 2001. Available at SSRN: https://ssrn.com/abstract=1985290

Karim M. Abadir (Contact Author)

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

HOME PAGE: http://www3.imperial.ac.uk/portal/page?_pageid=61,629646&_dad=portallive&_schema=PORTALLIVE

Gabriel Talmain

University of York - Department of Economics and Related Studies ( email )

Heslington
York, YO1 5DD
United Kingdom

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