[OPE-L:3713] Re: Re: Ignoring Revaluation

From: Michael Perelman (michael@ecst.csuchico.edu)
Date: Wed Aug 23 2000 - 20:40:02 EDT


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John, the assumption the you can predict physical life into the future seems
unjustified. As a result, I don't think that you can measure constant capital.

John Ernst wrote:

> If a new machine that costs $1000 will have a physical life of 20 years
> and an economic life of 10 years, what is the depreciation
> charge as we compute dM for its first year of use? For me and, I think,
> for Marx the charge would be $100. For you, given no technical change
> in machine production in that first year, the charge would be
> $50.

--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321 E-Mail michael@ecst.csuchico.edu



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