Re: [OPE-L] calculating the not rate of profit

From: Michael Perelman (michael@ECST.CSUCHICO.EDU)
Date: Wed Apr 04 2007 - 15:53:07 EDT

As I understand it, the US keeps score on capital values runs like this:

For each class of investment goods, there is an assumed fixed proportion of value
that evaporates each period, in which the depreciation is more rapid in the early
years.  There is a separate series for capital goods that are scrapped.  I assume
that the value goes away on the government books.

I believe that even when capital goods reported value have depreciated away, when
they are sold on the secondhand market, they have a value which can read appreciate.

-- Michael Perelman Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at

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