Capital Stock and Depreciation: Theory and an Empirical Application
(2019) , 26 pages
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- Authors
- Abstract
- There are many puzzles and unresolved problems in empirical economics that depend on the reliability of the productive capital series. Some macroeconomic topics and questions cannot be addressed correctly or answered with the available standard statistical measures of capital stock. We make an innovative contribution to the theory of capital together with an exercise that quantifies the depreciation rate and the capital stock for the U.S. economy. An intertemporal optimization model with adjustment and maintenance costs, gives us the algorithm and the corresponding economic estimation of capital deterioration and obsolescence. Our measures are based on profitability and the Tobin’s q ratio.
- Affiliations
Citations
Francisco J. Escribá-Pérez, Maria J. Murgui-García, & J. Ramon Ruiz-Tamarit. (2019). Capital Stock and Depreciation: Theory and an Empirical Application. https://hdl.handle.net/2078.5/172471