[OPE-L:4080] Re: RE: Revaluation

From: Andrew_Kliman (Andrew_Kliman@email.msn.com)
Date: Thu Oct 12 2000 - 21:52:35 EDT

In OPE-L 4060, John wrote,

: you seem to take the position that one type of depreciation transfers
: value to the output and the other type does not.  I think you then face
: the question of why moral depreciation is to be labeled "depreciation"
: all.

This presumes that the meaning of the term "depreciation" has to do with
transfer of value.  I don't think that is the case.

The meaning of the term "depreciation" -- and the etymology bears out
that this has consistently been the case -- is that there's a fall in
price or loss of value.  Thus the distinction between moral depreciation
and physical depreciation is a distinction between two causes of
reductions in the value of a means of production:  (a) its price falls;
(b) it has been partly used up.

Andrew Kliman

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