[OPE-L:3998] Re: More Depreciation Questions

Michael Perelman (michael@ecst.csuchico.edu)
Thu, 16 Jan 1997 09:44:55 -0800 (PST)

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Gerald Levy wrote:
> For all of the above reasons, any decision that a firm makes about future
> depreciation of constant fixed capital is very uncertain and, ultimately,
> is no more than a "guesstimate" regardless of the mathematical
> sophistication of the depreciation method chosen or the state of market
> research within the firm. Quite simply, they don't know. They can't know.

Yes, yes, yes. I think that John was intending just this point. It is
the one issue that I have been raising all along. Unless you have
rational expectations marxism, you cannot calculate the c in c+v+s.
Thus, questions of algebraic exactitude go out the windown. So far,
John is the only one who has picked up on my theme.

Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 916-898-5321 E-Mail michael@ecst.csuchico.edu