Vintage Depreciation, User Costs, and Total Factor Productivity: Theory and Identification for Real Estate Capital

Chihiro Shimizu

No DP26-9, RCESR Discussion Paper Series from Research Center for Economic and Social Risks, Institute of Economic Research, Hitotsubashi University

Abstract: We develop a vintage-accounts framework for real estate capital measurement . The Mutual Determination Lemma, formalises the equivalence among vintage prices, user costs, and depreciation rates a constraint routinely violated in applied work. The MaintenanceDepreciation Theorem shows that linearly increasing maintenance costs produce a strictly accelerating depreciation profile, rationalising geometric-type patterns. The Geometric PIM Decomposition Theorem proves that geometrically distributed retirement ages are necessary and sufficient for a geometric population PIM, establishing Diewert (2004) 's δ * =

Keywords: Vintage capital; depreciation; user cost; TFP; Builder's Model; land structure decomposition (search for similar items in EconPapers)
JEL-codes: C43 D24 D92 E22 R33 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2026-03
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