LIFETIMES OF MACHINERY AND EQUIPMENT: EVIDENCE FROM DUTCH MANUFACTURING

Abdul Azeez Erumban

Review of Income and Wealth, 2008, vol. 54, issue 2, 237-268

Abstract: This paper estimates service lifetimes for capital assets in Dutch manufacturing industries, using information on asset retirement patterns. A Weibull distribution function is estimated using a non‐linear regression technique to derive service lifetimes for three selected asset types: transport equipment, machinery and computers. For this purpose, benchmark capital stock surveys for different two‐digit industries are linked to annual discard surveys. On average the estimated lifetimes are 6, 9 and 26 years for transport equipment, computers and machinery, respectively. However, these estimates vary across industries. A comparison of our estimates with Canadian, U.S. and Japanese estimates shows notable differences in the lifetimes of all the asset types, with machinery showing the largest difference.

Date: 2008
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https://doi.org/10.1111/j.1475-4991.2008.00272.x

Related works:
Working Paper: Lifetimes of Machinery and Equipment. Evidence from Dutch Manufacturing (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:revinw:v:54:y:2008:i:2:p:237-268

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