In OPE-L 4060, John wrote, : you seem to take the position that one type of depreciation transfers : value to the output and the other type does not. I think you then face : the question of why moral depreciation is to be labeled "depreciation" at : all. This presumes that the meaning of the term "depreciation" has to do with transfer of value. I don't think that is the case. The meaning of the term "depreciation" -- and the etymology bears out that this has consistently been the case -- is that there's a fall in price or loss of value. Thus the distinction between moral depreciation and physical depreciation is a distinction between two causes of reductions in the value of a means of production: (a) its price falls; (b) it has been partly used up. Andrew Kliman
This archive was generated by hypermail 2b29 : Tue Oct 31 2000 - 00:00:09 EST