[OPE-L:5841] Re: Depreciation and the BEA

Gerald Levy (glevy@pratt.edu)
Tue, 16 Dec 1997 12:00:26 -0500 (EST)

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John wrote on Tue, 16 Dec:

> a. Different depreciation rates are assumed for different
> types of fixed capital.

A few questions:

1) What is the basis for the assumptions regarding the differing
depreciation rates of different types of fixed capital? E.g. are
previous depreciation rates on a given type of fixed capital assumed
to continue into the future?

2) When there is a qualitatively new type of fixed capital how does
the BEA impute a depreciation rate on that equipment?

> 2. There is a bit of debate concerning how obsolescence is taken into
> account.

3) What are the different sides and who are the major players in this

In solidarity, Jerry