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The Economic Theory of Replacement and Depreciation

  • Dale W. Jorgenson

Abstract

The economic theory of production — including the description of technology, the conditions for producer equilibrium, and the response of variables determined in the theory to changes in parameters — may be developed in a form that abstracts from specific interpretations.1 In the intertemporal theory of production each commodity is distinguished by point of time. As an illustration, an hour of labour today and an hour of labour tomorrow are treated as distinct commodities. Given this convention the intertemporal theory of producer behaviour is formally analogous to the standard atemporal theory.2

Keywords

Cash Flow Capital Stock Technical Change Capital Good Durable Good 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Dale W. Jorgenson 1974

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  • Dale W. Jorgenson

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