This study identifies several interrelated reasons why firms' depreciation method choice is likely to influence … managers' capital investment decisions. We find that firms that use accelerated depreciation make significantly larger capital … investments than firms that use straight-line depreciation. Further, we find that there has been a migration away from accelerated …

effects of higher inflation unambiguously declining with asset life. We show that this is true only if depreciation is treated … as geometric for tax purposes. When depreciation is straightline, higher inflation can have the opposite effect …

introduce a targeted temporary super depreciation allowance to support much-needed green and digital transitions. Using a …

We develop a stochastic general equilibrium model in which maintenance endogenously affects the capital depreciation … the short run. We use Bayesian estimation to obtain the time profile of equipment capital depreciation in Canadian … manufacturing. The depreciation rate has been quite volatile and procyclical over the last 50 years. …

This paper analyzes the consequences of incorporating a different rate for tax depreciation than for economic … depreciation. Firms most often choose their tax depreciation rate in a strategic way. It would therefore be a coincidence if this … optimization process leads to a tax depreciation rate that equals the economic depreciation rate. The implications of a difference …

Wykoff (1989) have inferred patterns of depreciation from the age-price profile of used capital goods. An alternative method …, pioneered by Coen (1975), infers depreciation patterns from the behavior of investment expenditures. This study exploits Coen …'s investment approach. Numerous capital stocks, generated for alternative combinations of depreciation methods and service lives …