Suppose we have observations ranging over t = 0; 1;... T on real net investment, {In;t} , and on real gross investment, {Ig;t}. We derive a method of calculating the depreciation rate for each of the periods {delta t} , and estimating `the' implied net capital stock {Kt}. We then provide empirical...

Suppose we have observations ranging over t=0,1,…T on real net investment, {I_{n,t}}₀^{T}, and on real gross investment, {I_{g,t}}₀^{T}. We derive a method of calculating the depreciation rate for each of the periods {δ_{t}}₁^{T}, and estimating `the' implied net capital stock...