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Lifetimes Of Machinery And Equipment: Evidence From Dutch Manufacturing

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Author Info
Abdul Azeez Erumban

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Abstract

This paper estimates service lifetimes for capital assets in Dutch manufacturing industries, using information on asset retirement patterns. A Weibull distribution function is estimated using a non-linear regression technique to derive service lifetimes for three selected asset types: transport equipment, machinery and computers. For this purpose, benchmark capital stock surveys for different two-digit industries are linked to annual discard surveys. On average the estimated lifetimes are 6, 9 and 26 years for transport equipment, computers and machinery, respectively. However, these estimates vary across industries. A comparison of our estimates with Canadian, U.S. and Japanese estimates shows notable differences in the lifetimes of all the asset types, with machinery showing the largest difference. Copyright 2008 The Author. Journal compilation International Association for Research in Income and Wealth 2008.

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File URL: http://www.blackwell-synergy.com/links/doi/10.1111/j.1475-4991.2008.00272.x/enhancedabs
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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Income and Wealth.

Volume (Year): 54 (2008)
Issue (Month): 2 (06)
Pages: 237-268
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Handle: RePEc:bla:revinw:v:54:y:2008:i:2:p:237-268

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  1. Wang, Lili & Szirmai, Adam, 2008. "Regional Capital Inputs in Chinese Industry and Manufacturing, 1978-2003," UNU-MERIT Working Paper Series 028, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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