Capital Depreciation Measure

A Capital Depreciation Measure is a microeconomic measure that ...

• See: Capital's Share of Income.

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References

2016

• https://en.wikipedia.org/wiki/Depreciation_(economics)
  • In economics, depreciation is the gradual decrease in the economic value of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question. If the capital stock is [math]\displaystyle{ K_t }[/math] in one period [math]\displaystyle{ t }[/math], gross (total) investment spending on newly produced capital is [math]\displaystyle{ I_t }[/math] and depreciation is [math]\displaystyle{ D_t }[/math], the capital stock in the next period, [math]\displaystyle{ K_{t+1} }[/math], is [math]\displaystyle{ K_t + I_t - D_t }[/math]. The net increment to the capital stock is the difference between gross investment and depreciation, and is called net investment.

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