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Lifetimes of Machinery and Equipment. Evidence from Dutch Manufacturing

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Author Info
Erumban, Abdul Azeez (Groningen University)

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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 nonlinear regression technique to derive service lifetimes for three selected asset types: transport equipment, machinery and computers. For this purpose the benchmark capital stock surveys for different two digit industries are linked to annual discard surveys. On average the estimated lifetimes are respectively 6, 9 and 26 years for transport equipments, computers and machinery. However, these estimates vary across industries. A comparison of our estimates with Canadian, US and Japanese estimates shows notable differences in the lifetimes of all the asset types, with machinery showing the largest difference.

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File URL: http://irs.ub.rug.nl/ppn/296974390
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Publisher Info
Paper provided by Groningen Growth and Development Centre, University of Groningen in its series GGDC Research Memorandum with number GD-87.

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Date of creation: 2006
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Handle: RePEc:dgr:rugggd:gd-87

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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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This page was last updated on 2009-11-20.

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