Continuing the discussion of the RRI and depreciation:
>John comments:
>
>Perhaps I am wrong but I have assumed that in using the "Windfrey
>tables" each vintage is depreciated in a manner not unlike
>straight-line depreciation. If not, I'd be interested in the
>reasoning behind using something other than straight line.
Duncan: I'm getting out of my depth empirically here, but I think the
Windfrey tables were originally meant to trace the actual service lifetimes
of various classes of capital goods, and establish a non-linear profile
that reflects actual wear-and-tear experience. But I don't know what the
methodology was.
Cheers,
Duncan
Duncan K. Foley
Department of Economics
Barnard College
New York, NY 10027
(212)-854-3790
fax: (212)-854-8947
e-mail: dkf2@columbia.edu