[OPE-L:5771] Re: [OPE-l] Re: RRI and the Rate of Profit

Duncan K. Foley (dkf2@columbia.edu)
Sat, 29 Nov 1997 13:02:11 -0500 (EST)

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Continuing the discussion of the RRI and depreciation:

>John comments:
>Perhaps I am wrong but I have assumed that in using the "Windfrey
>tables" each vintage is depreciated in a manner not unlike
>straight-line depreciation. If not, I'd be interested in the
>reasoning behind using something other than straight line.

Duncan: I'm getting out of my depth empirically here, but I think the
Windfrey tables were originally meant to trace the actual service lifetimes
of various classes of capital goods, and establish a non-linear profile
that reflects actual wear-and-tear experience. But I don't know what the
methodology was.


Duncan K. Foley
Department of Economics
Barnard College
New York, NY 10027
fax: (212)-854-8947
e-mail: dkf2@columbia.edu