Since the 1980s, tax depreciation allowances are used less as instruments of macroeconomic stabilization and more long-term measures to stimulate investment. This paper tabulates types accelerated in South Africa calculates magnitude these benefits addition standard across-the-board accounting by companies. Using anonymized assessment data from African Revenue Service, analysis generates aggreg...

Optimal decisions by economic agents regarding the utilization of capital lead to empirically plausible speeds of convergence in one-sector models of economic growth. The relationship between depreciation and capital utilization plays a crucial role in slowing down convergence to the steady state. Cross-country differences in the extent to which the capital utilization decision is internalized ...

Reinvestments refer to repairs and maintenance activities, as well as rehabilitation investments undertaken with the purposes of improving existing housing assets and standard of life (1). Reinvestment behaviour of household (Hh) in housing has been investigated for more than four decades in the literature. Macro implications of individual behaviour however, remain largely neglected. Hhs’ reinv...

Almost everyone believes that the US current account deficit must eventually end, and that this end will involve dollar depreciation. However, many believe that this depreciation will take place gradually. This paper shows that any process of gradual dollar decline fast enough to prevent the accumulation of implausible levels of US external debt would impose capital losses on investors much lar...

Some access pricing regimes derive allowable cash flows to provide investors with an expectation of receiving a required real pre – (company) tax rate of return, with compensation for inflation built in via the allowable return of capital (depreciation). The required real pre-tax return is derived from nominal (or real) post-tax required returns. Techniques commonly used to transform post tax i...

Sovereign default often affects country’s trade relations. The defaulter’s currency depreciates while trade volume falls drastically. To explain this connection, this study proposes a model to incorporate real depreciation along with sovereign bankruptcy. Defaulters must exchange more of their own goods for imports, which stimulates an adjustment to the equilibrium exchange rate. We demonstrate...

Few studies have examined the impacts of ground water quality on residential property values. Using a unique data set of well tests, we link residential real estate transactions to home-specific contamination and conduct a hedonic analysis of sales in Lake County, Florida, where pollution concerns relate primarily to agricultural run-off. We find that recent testing and contamination of ground ...

After the large exchange rate depreciations following the 1997 East Asian crisis, export volumes from East Asian countries responded with a notable lag. Two main explanations for this lag have been proposed: that the policy of high interest rates limited access to domestic credit and hence limited the supply of exports; and that “competitive depreciation” neutralized the effects on demand for e...