The NIPA method has the serious problem of lumping together diverse types of capital, for example, office equipment, which I assume includes both staplers and computers.
Now they're talking about including software. I would really like to know your opinion on the software question. Finally, the depreciation looks at resale values, which might make sense, but then their formulae take no account of changing market conditions. I do with this question in my Keynes book. On Wed, Jun 14, 2006 at 12:05:11PM -0400, Doug Henwood wrote: > Not exactly. NIPA depreciation attempts to correct for changes in > accounting conventions (through the capital consumption adjustment) > to reflect the actual economic life of equipment. You can say they > get it wrong, but you can't say they don't try. > -- Michael Perelman Economics Department California State University Chico, CA 95929 Tel. 530-898-5321 E-Mail michael at ecst.csuchico.edu
