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Expected service lives and depreciation profiles for capital assets: Evidence based on a survey of Norwegian firms

Author

Listed:
  • Barth, Nini

    (Statistics Norway)

  • Cappelen, Ådne

    (Statistics Norway)

  • Skjerpen, Terje

    (Statistics Norway)

  • Todsen, Steinar

    (Statistics Norway)

  • Åbyholm, Thom

    (Statistics Norway)

Abstract

This paper presents results from a survey of Norwegian firms on their perception of expected economic service life of various fixed capital assets as well as their assessment of depreciation profiles. An econometric analysis for two types of capital assets, where second hand markets and prices are available, shows that expected service life for Machinery and equipment for mining and manufacturing is estimated to be between 9 and 10 years. For Tools, instruments, furnishings etc. the expected service life is estimated to be 8 years. These results are in line with a descriptive analysis of the survey and they are also quite similar to those found in the existing literature. Results from this study have been used in a revision of the Norwegian national accounts.

Suggested Citation

  • Barth, Nini & Cappelen, Ådne & Skjerpen, Terje & Todsen, Steinar & Åbyholm, Thom, 2016. "Expected service lives and depreciation profiles for capital assets: Evidence based on a survey of Norwegian firms," Journal of Economic and Social Measurement, IOS Press, issue 4, pages 329-369.
    • Handle: RePEc:ris:iosjes:0061
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    References listed on IDEAS

    as
    1. Abdul Azeez Erumban, 2008. "Lifetimes Of Machinery And Equipment: Evidence From Dutch Manufacturing," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 54(2), pages 237-268, June.
    2. Statistics Canada, 2007. "Depreciation Rates for the Productivity Accounts," The Canadian Productivity Review 2007005e, Statistics Canada, Economic Analysis Division.
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    Cited by:

    1. Boug, Pål & Brasch, Thomas von & Cappelen, Ådne & Hammersland, Roger & Hungnes, Håvard & Kolsrud, Dag & Skretting, Julia & Strøm, Birger & Vigtel, Trond C., 2023. "Fiscal policy, macroeconomic performance and industry structure in a small open economy," Journal of Macroeconomics, Elsevier, vol. 76(C).
    2. Smolyak, Sergey, 2023. "Оценка Подержанных Машин На Основе Новой Модели Их Деградации [Valuation of used machinery based on the new model of its degradation]," MPRA Paper 119423, University Library of Munich, Germany, revised 15 Jun 2023.
    3. Thomas von Brasch & Ådne Cappelen & Håvard Hungnes & Terje Skjerpen, 2020. "Modeling R&D spillovers to productivity. The effects of tax policy," Discussion Papers 927, Statistics Norway, Research Department.
    4. von Brasch, T. & Cappelen, Å. & Hungnes, H. & Skjerpen, T., 2021. "Modeling R&D spillovers to productivity: The effects of tax credits," Economic Modelling, Elsevier, vol. 101(C).

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    More about this item

    Keywords

    Depreciation; capital stock; service lives; survey;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values

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