The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd


  • Charles R. Hulten
Reference work entry


‘Amortization’ is an accounting term meaning the allocation of a cost to several time periods. The term is derived from the Latin word for ‘death’ and literally means to ‘kill off’ the liability. Debts which are paid off gradually are said to be amortized.


Amortization Balloon loan Depreciation Investment Asset value 

JEL Classifications

M4 G00 M40 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Charles R. Hulten
    • 1
  1. 1.