Depreciation in Production Analysis and in Income and Wealth Accounts: Resolution of an Old Debate
In this article, the author proposes a resolution for the long-standing controversy over depreciation. He develops, from capital theory, income and wealth accounting capital concepts and compares them with those from production analysis and productivity measurement. The author concludes that depreciation in economic accounts is exactly the same measurement as in production analysis. As for empirical implications, market-based measures of depreciation are appropriate for economic accounts, provided they are appropriate empirical measures of economic depreciation. Copyright 1996 by Oxford University Press.
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Volume (Year): 34 (1996)
Issue (Month): 1 (January)
Pages: 93-115
| Handle: | RePEc:oup:ecinqu:v:34:y:1996:i:1:p:93-115 |
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