[OPE-L:4042] depreciation dynamics, please

Gerald Lev (glevy@pratt.edu)
Thu, 23 Jan 1997 09:02:08 -0800 (PST)

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We have seen quite a discussion on moral depreciation, but has anyone yet
attempted to develop a dynamic model of the trade cycle in which there is
both physical and moral depreciation of constant fixed capital?

Further, has anyone attempted to rigorously explain the relationship
between:

a) the law of the tendency for the general rate of profit to
decline (LTGRPD),
b) the "counteracting factors",
c) credit,
d) competition; and
e) the turnover time of fixed capital in which moral deprecation is
explicitly incorporated?

If not, can anyone offer answers to the above questions?

In solidarity, Jerry