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Economical Type of Depreciation

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Abstract

The article reveals the difference between the tax and economic depreciation of fixed assets. Formed a theoretical justification of various influences on the growth of economic depreciation of the country where the fixed assets operates and provide sustainable growth rate for firms. Article generates estimation of influence differences between the tax and economic depreciation on the company's growth. Developed theoretical mechanisms for estimate economical depreciation and set her influence on the capacity for renewal of fixed assets. Formed methodology of function mechanism the implementation of reinvestment with condition identity between tax and economical depreciation of fixed assets. The article analyzes the profit which can be obtained from instruments of labor which consists of depreciated. Developed a theory for estimate repair, replacement tools that includes in calculation of depreciation of work tools.

Suggested Citation

  • Maxim Moroz, 2016. "Economical Type of Depreciation," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-32.
    • Handle: RePEc:bas:econst:y:2016:i:3:p:3-32
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    References listed on IDEAS

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    1. Nicholas Oulton, 2002. "ICT and Productivity Growth in the United Kingdom," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 18(3), pages 363-379.
    2. repec:ucp:bknber:9780226304557 is not listed on IDEAS
    3. Jorgenson, Dale W, 1996. "Empirical Studies of Depreciation," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 24-42, January.
    4. Martin Feldstein & Lawrence Summers, 1983. "Inflation, Tax Rules, and the Long-term Interest Rate," NBER Chapters, in: Inflation, Tax Rules, and Capital Formation, pages 153-185, National Bureau of Economic Research, Inc.
    5. Hulten, Charles R & Wykoff, Frank C, 1996. "Issues in the Measurement of Economic Depreciation: Introductory Remarks," Economic Inquiry, Western Economic Association International, vol. 34(1), pages 10-23, January.
    6. Robert J. Gordon, 1990. "The Measurement of Durable Goods Prices," NBER Books, National Bureau of Economic Research, Inc, number gord90-1, May.
    7. Ibendahl, Gregory A. & Norvell, Jonathan, 2007. "Optimal Machinery Replacement under Accelerated Depreciation," 2007 Annual Meeting, February 4-7, 2007, Mobile, Alabama 34873, Southern Agricultural Economics Association.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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