Depreciation Rates in a Transition Economy: Evidence from Czech Panel Data
Microeconomics from University Library of Munich, Germany
This paper examines industrial differences in depreciation rates and the suitability of financial data for a microeconomic analysis. Depreciation is a main source of enterprise investment and serves as a source for replacement of obsolete or used-up capital. The findings on capital structure in this paper are consistent with the common view that heavy industry firms have long-life capital while firms operating in electronics, or light industry as a whole, have a capital structure containing a higher portion of a short-life capital. Also, larger firms are more likely to have a higher portion of long-life capital, like real estate. The last conclusion drawn from this analysis is that certain types of financial data might be highly influenced by seasonal effects which could operate as a measurement error and therefore distort estimates which are sensitive to measurement error.
Keywords: Measurement error; Depreciation; Investment; Financial data; Transition (search for similar items in EconPapers)
JEL-codes: C23 D21 G31 K34 M4 P11 (search for similar items in EconPapers)
Note: Type of Document - Acrobat PDF; pages: 26 ; figures: Included
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Journal Article: Depreciation rates in a transition economy: evidence from czech panel data (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpmi:0012004
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