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Estimation of the Depreciation Rate of Physical and R&D Capital in the U.S. Total Manufacturing Sector

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  • Nadiri, M Ishaq
  • Prucha, Ingmar R

Abstract

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, the authors specify a model of factor demand that allows them 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. Copyright 1996 by Oxford University Press.

Suggested Citation

  • Nadiri, M Ishaq & Prucha, Ingmar R, 1996. "Estimation of the Depreciation Rate of Physical and R&D Capital in the U.S. Total Manufacturing Sector," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 43-56, January.
    • Handle: RePEc:oup:ecinqu:v:34:y:1996:i:1:p:43-56
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