Suppose we have observations ranging over t = 0; 1;... T on real net investment, {In;t} , and on real gross investment, {Ig;t}. We derive a method of calculating the depreciation rate for each of the periods {delta t} , and estimating `the' implied net capital stock {Kt}. We then provide empirical examples of the procedure, and analyse the results.
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Paper provided by Department of Economics, University of York in its series Discussion Papers with number
98/3.
Length: Date of creation: Date of revision: Handle: RePEc:yor:yorken:98/3
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