NEW EVIDENCE ON THE RETIREMENT AND DEPRECIATION OF MACHINE TOOLS
- 1 January 1996
- journal article
- Published by Wiley in Economic Inquiry
- Vol. 34 (1) , 57-77
- https://doi.org/10.1111/j.1465-7295.1996.tb01364.x
Abstract
This paper uses data from machinery dealers to estimate the retirement and depreciation patterns for a broad set of conventional machine tools. According to the dealers, the average service life of these machines at the survey date was about thirty years. Service lives were even longer in the mid‐1970s, with the reduction over time likely caused by the diffusion of superior, computer controlled machines. Consistent with the relatively long average life, the conventional machines have depreciated slowly. I use the results to assess the average service life assumed by the Bureau of Economic Analysis to construct capital stocks for metalworking machinery.Keywords
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This publication has 3 references indexed in Scilit:
- The estimation of economic depreciation using vintage asset pricesJournal of Econometrics, 1981
- ECONOMIC DEPRECIATION IN A CAPITAL GOODS INDUSTRYNational Tax Journal, 1976
- Computer-Managed Parts ManufactureScientific American, 1975