Estimation of a variable rate of depreciation: A dummy variable approach

Ingmar Prucha

No 293, Discussion Papers, Series II from University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy"

Abstract: Many important economic problems require measures of physical and R&D capital. Except for some recent studies, there have been relatively few contributions in the literature that provide econometric estimates for the depreciation rates of physical and R&D capital. One reason for the relative paucity of such econometric studies may be that if the depreciation rates are viewed as unknown parameters, or as a functions of unknown parameters, then the corresponding stocks of physical and R&D capital are also unobserved, resulting in a formidable estimation problem. In the past econometric estimates of the depreciation rates of physical and R&D capital were typically obtained from self-programmed estimation algorithms. In this note we introduce an approach that permits the econometric estimation of constant and variable rates of depreciation of physical and R&D capital using standard econometric packages.

Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/101506/1/722309619.pdf (application/pdf)

Related works:
Journal Article: Estimation of a variable rate of depreciation: a dummy variable approach (1997)
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:zbw:kondp2:293

Access Statistics for this paper

More papers in Discussion Papers, Series II from University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy" Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().