[OPE-L:3998] Re: More Depreciation Questions

Michael Perelman (michael@ecst.csuchico.edu)
Thu, 16 Jan 1997 09:44:55 -0800 (PST)

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Gerald Levy wrote:
>
> For all of the above reasons, any decision that a firm makes about future
> depreciation of constant fixed capital is very uncertain and, ultimately,
> is no more than a "guesstimate" regardless of the mathematical
> sophistication of the depreciation method chosen or the state of market
> research within the firm. Quite simply, they don't know. They can't know.

Yes, yes, yes. I think that John was intending just this point. It is
the one issue that I have been raising all along. Unless you have
rational expectations marxism, you cannot calculate the c in c+v+s.
Thus, questions of algebraic exactitude go out the windown. So far,
John is the only one who has picked up on my theme.

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

Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu