We consider a discrete-time two-sector CES economy with sector specific external effects and partial depreciation of capital. We show that the occurrence of local indeterminacy of equilibria depends on an interplay between factor substitutability and capital depreciation. When the elasticity of substitution is less than one, local indeterminacy may occur with low depreciation of capital. When t...

Structural shifts characterize the volatility of the Korean stock and foreign exchange markets during the 1997 Asian financial crisis. This paper employs an unrestricted bivariate GARCH-M model of stock market returns to investigate empirically the effects of daily currency depreciation on Korean stock market returns. The evidence shows that currency depreciation significantly affects stock mar...

This study examined trajectories of posttraumatic growth or depreciation (i.e., positive or negative life change) in personal strength and relationships after 2 major earthquakes in Canterbury, New Zealand using group-based trajectory modeling. Participants completed questionnaires regarding posttraumatic growth or depreciation in personal strength and relationship domains 1 month after the fir...

A review of 116 travel cost models finds that, of the studies that report their practice, about half include depreciation in their calculation of vehicle costs and half do not, with none giving a justification for either approach. We examine empirically whether depreciation is related to households’ decisions of how much to drive. Using a sample of over 200,000 US households, we find that, rela...

Will people report both posttraumatic growth and depreciation following a highly stressful event? Using the Posttraumatic Growth Inventory as the measure of growth, two studies compared responses to equivalent items designed to assess depreciation. Both types of change were reported, but growth was reported at much higher levels, and there was no correlation between growth and depreciation. Sma...

This paper studies how the difference between technical depreciation and tax depreciation affects the firm’s optimal investment strategy. The objective is maximization of shareholder value. When tax depreciation differs from technical depreciation, an additional investment not only generates value due to the fact that the firm can produce more, but also due to the fact that an additional deferr...

Firms can use capital that they either purchase or lease, but these alternatives are treated differently for tax purposes. This paper derives the demand for leased capital as a function of tax parameters, and uses the model to estimate the responsiveness of leasing to the introduction of bonus depreciation in 2002, finding strong evidence that depreciation allowances influence leasing patterns....

R&D depreciation rates are critical to calculating the rates of return to R&D investments and capital service costs, which are important for capitalizing R&D investments in the national income accounts and harmonizing BEA statistics with those of the productivity program of BLS. Although important, measuring R&D depreciation rates is extremely difficult because both the price and output of R&D ...

We consider a discrete-time two-sector Cobb-Douglas economy with positive sector specific external effects and partial depreciation of capital. We show that local indeterminacy of steady states and cycles can easily arise with constant social returns to scale, and very small market imperfections. However these properties of equilibrium paths become less likely in the case of partial depreciatio...

The Review of Business Taxation chaired by Mr John Ralph has suggested sweeping changes to business taxation in Australia. In particular it has been proposed that accelerated depreciation provisions be removed to finance a reduction in the company tax rate. If some degree of accelerated depreciation is to be retained, it is suggested that this should involve a uniform loading on depreciation ra...