To even come close, they would have to base their adjustment formula on direct and current observations of a statistically representative sample. (And it would have to be well-designed, adequately funded and competently administered). Do they do this? Or do they base their adjustment formula on some survey conducted twenty years ago?
On 6/14/06, Doug Henwood <[EMAIL PROTECTED]> 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.
-- Sandwichman
