Book/Printed Material How fast do personal computers depreciate? Concepts and new estimates

Title

• How fast do personal computers depreciate? Concepts and new estimates

Summary

• "This paper provides new estimates of depreciation rates for personal computers using an extensive database of prices of used PCs. Our results show that PCs lose roughly half their remaining value, on average, with each additional year of use. We decompose that decline into age-related depreciation and a revaluation effect, where the latter effect is driven by the steep ongoing drop in the constant-quality prices of newly-introduced PCs. Our results are directly applicable for measuring the depreciation of PCs in the National Income and Product Accounts (NIPAs) and were incorporated into the December 2003 comprehensive NIPA revision. Regarding tax policy, our estimates suggest that the current tax depreciation schedule for PCs closely tracks the actual loss of value in a zero-inflation environment. However, because the tax code is not indexed for inflation, the tax allowances would be too small in present value for inflation rates above the very low level now prevailing"--National Bureau of Economic Research web site.

Names

• Doms, Mark E.
• National Bureau of Economic Research

Created / Published

• Cambridge, MA : National Bureau of Economic Research, c2004.

Headings

• -  Depreciation
• -  Microcomputers

Notes

• -  Title from PDF file as viewed on 1/12/2005.
• -  Includes bibliographical references.
• -  Also available in print.
• -  Mode of access: World Wide Web.
• -  System requirements: Adobe Acrobat Reader.

Call Number/Physical Location

• HB1

Digital Id

• https://hdl.loc.gov/loc.gdc/gdcebookspublic.2005615148
• http://papers.nber.org/papers/w10521 External

Library of Congress Control Number

• 2005615148

Access Advisory

• Unrestricted online access

Online Format

• image
• pdf

LCCN Permalink

• https://lccn.loc.gov/2005615148

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• MARCXML Record
• MODS Record
• Dublin Core Record