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The measurement of depreciation in the U.S. National Income and Product Accounts.(new geometric method used by the Bureau of Economic Analysis)

From: Survey of Current Business  |  Date: 7/1/1997  |  Author: Fraumeni, Barbara M.

The Bureau of Economic Analysis has begun using a new method of evaluating depreciation. The change is part of a revision of the National Income and Product Accounts. Depreciation of most equipment and structures will now be calculated using empirical studies of resale prices. The new geometric model will replace the former linear model of depreciation except for assets that studies show do not depreciate geometrically. The methodology of the new calculations is presented.

As part of the ...

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