Measurement of Capacity Depreciation Based on Engineering Data

John B. Penson, Dean W. Hughes and Glenn L. Nelson

American Journal of Agricultural Economics, 1977, vol. 59, issue 2, 321-329

Abstract: The widely used estimates of annual capacity depreciation for selected types of farm producer capital published by the US DA rest on the assumption that the amount of capital consumed annually equals a constant fraction of the existing capital stocks. This study demonstrates, through the use of agricultural engineering data, that the productive capacity of farm tractors deteriorates in a concave rather than the convex pattern suggested by present USDA estimates. The implications for studies estimating aggregate production functions based on factor shares or farm investment demand equations are discussed. Finally, recommendations for change to selected sector economic accounts are made.

Date: 1977
References: Add references at CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
http://hdl.handle.net/10.2307/1240022 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:59:y:1977:i:2:p:321-329.

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press ().