Estimating Farm Equipment Depreciation: Which Functional Form Is Best?

Jing Wu and Gregory Perry

American Journal of Agricultural Economics, 2004, vol. 86, issue 2, 483-491

Abstract: Farm equipment depreciation has been the focus of research in economics and engineering for more than 60 years. Using data from 16 years of auction sales, depreciation functions were estimated for 17 types of equipment, including tractors, combines, swathers, planters, discs, and trucks. The Box—Cox function did the best job of explaining variability in these various sales data bases and in forecasting prices in an out-of-sample data set. Nevertheless, the much less complicated double square root and sum-of-year's digits functions performed nearly as well. Simplified double square root estimates are provided for practitioners interested in forecasting equipment depreciation. Copyright 2004, Oxford University Press.

Date: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://hdl.handle.net/10.1111/j.0092-5853.2004.00593.x (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:86:y:2004:i:2:p:483-491

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 ().