[OPE-L:6251] Re: Query

Seongjin Jeong (seongjin@gshp.gsnu.ac.kr)
Sun, 08 Mar 1998 17:40:43 +0900

John R. Ernst wrote:
> We often assume that Marx used straight-line depreciation
> as he reckons how much fixed capital transfers to the value
> of output.
> a. How do we know this?

I think, follwing paragraph from Capital Vol.2 shows that Marx used
straight-line depreciation.

"Let us assume that his fixed capital has to be renewed in ten years.
Each year, then, he amortizes 1/10= L 400. <After the first year> he has
a value of L 3,600 in fixed capital and L 400 in money. ... " (Capital,
Vol1, Penguin, p.198.)

> b. If capitalists, in Marx's view, are using a "sinking-fund"
> method of depreciation, should we not use it in computing
> values?
> John