This paper develops and estimates a stochastic general equilibrium model with capital maintenance, which affects endogenously the depreciation rate of capital. The estimate of maintenance series is found to track survey-based measures for Canada quite closely and to generate the procyclical pattern of maintenance observed in the data. We use our model estimates to infer the time profile of equipment capital depreciation in Canadian and US manufacturing. The depreciation rate is estimated to be volatile and highly procyclical in both countries

Albonico, A., Kalyvitis, S., Pappa, E. (2014). Capital maintenance and depreciation over the business cycle. JOURNAL OF ECONOMIC DYNAMICS & CONTROL, 39, 273-286 [10.1016/j.jedc.2013.12.008].

Capital maintenance and depreciation over the business cycle

ALBONICO, ALICE;
2014

Abstract

This paper develops and estimates a stochastic general equilibrium model with capital maintenance, which affects endogenously the depreciation rate of capital. The estimate of maintenance series is found to track survey-based measures for Canada quite closely and to generate the procyclical pattern of maintenance observed in the data. We use our model estimates to infer the time profile of equipment capital depreciation in Canadian and US manufacturing. The depreciation rate is estimated to be volatile and highly procyclical in both countries
Articolo in rivista - Articolo scientifico
Endogenous capital depreciation; Maintenance; Real business cycle; Economics and Econometrics; Control and Optimization; Applied Mathematics
English
2014
39
273
286
none
Albonico, A., Kalyvitis, S., Pappa, E. (2014). Capital maintenance and depreciation over the business cycle. JOURNAL OF ECONOMIC DYNAMICS & CONTROL, 39, 273-286 [10.1016/j.jedc.2013.12.008].
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/141873
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