Office of Tax Analysis 

U.S. Treasury Department 

Washington, D.C. 20220 

Issued: September. 1976 

Depreciation, Profits, and Rates of Return 

in Manufacturing Industries 

Robert M. Coen 

Northwestern University 

OTA Paper 3 April 1975 

TABLE OF CONTENTS 

Page 

I. Introduction ....................... 1 

11. Historical and Current-Cost Concepts of Economic 

Depreciation ....................... 3 

A. The Historical-Cost Concept ............. 3 

B. The Current-Cost Concept ............... 8 

111. Estimates of Economic Depreciation and Profits ...... 14 

A. Estimates of Depreciation .............. 14 

(1) Historical-Cost Estimates ............ 14 

(2) Current-Cost Estimates .............. 14 

(3) Estimates by Industry .............. 17 

B. Estimates of Profits ................. 18 

IV. Economic Depreciation and Replacement Requirements . . 21 

V. Estimates of Gross Rates of Return ............ 26 

VI. Conclusion ........................ 32 

I, INTRODUCTION 

In earlier work funded by the Treasury Department [2,3], I 

attempted to estimate service lives and depreciation patterns of capital 

goods employed in manufacturing industries which on average best accounted for observed fluctuations in capital spending. I have referred 

to these as the service lives and depreciation patterns revealed or 

indicated by investment behavior. 

This study explores some of the implications of my previous 

findings .L/ By applying the revealed services lives and depreciation 

patterns to capital expenditures in each industry, I have prepared 

estimates of annual depreciation flows which-are not only consistent 

over time, but which also reflect actual service lives and actual losses 

in efficiency of capital goods as they age. Two variants of these 

depreciations flows are considered, the first based on historical cost 

of assets and the second on current, or replacement, cost of assets. 

Section11 details the assumptions and algebraic formulas appropriate to 

each measure. The estimates are presented in Section 111, where they 

are compared with the Bureau of Economic Analysis (BEA) data on capital 

consumption allowances, Section I11 also compares profit estimates 

based on my measures of depreciation with BEA profit estimates. 

I have drawn a distinction in my previous papers between replacement requirements and depreciation. Replacement requirements measure 

the amount of real capital expenditures needed to maintain the productive capacity of the existing stock of capital, whereas depreciation 

reflects the decline in value of the existing stock of capital over the 
-2-

accounting period. I have shown that replacement requirements and 

depreciation are the same only under conditions of constant geometric 

decay of productive capacity of capital goods and constant prices. 

Since constant geometric decay of productive capacity was not revealed 

by investment behavior in any manufacturing industries, and since prices 

do change over time, the empirical relation between replacement requirements and depreciation is worth exploring. Section IV presents my 

estimates of replacement requirements valued at current prices and compares them with both my series and the BEA series on depreciation. 

In applying my revealed service lives and depreciation patterns 

to capital expenditures, it is possible to estimate not only annual 

flows of depreciation but also the value of equipment and structures in 

existence at the end of each year - what I shall call the "book value" 

of those assets. Taking the ratio of my estimate of profits (including 

net interest) to the average of book value of assets at the beginning 

and end of the year, I arrive at estimates of the rate of return on 

capital which embody consistent measurements of depreciation and book 

values - not only consistent over time, but consistent with my findings 

on service lives and patterns of loss of efficiency of capital goods. 

These new estimates of rates of return in manufacturing industries 

are presented in Section V. 
-3-

11. HISTORICAL AND CURRENT-COST CONCEPTS OF ECONOMIC DEPRECIATION 

A. The Historical-Cost Concept. In my initial study, I showed 

how a capacity depreciation pattern, depicting the loss of efficiency 

of a capital good as it ages, can be translated into a pattern of economic 

depreciation, depicting the loss in value of the capital good as it ages. 

To illustrate, consider an asset whose service life is three years. 

Let d. be the loss of productive capacity of the asset in year j of its 

J 

life relative to its efficiency when new. Suppose that the asset adds 

X units to real net output (net of material costs, labor, and other 

costs) and that the output's selling price, P, remains constant through 

time. The asset will then give rise to the following stream of net 

money returns. 

Year of Service Life Net Money Re turn 

1 PX 

2 PX(1-dl) 

3 PX(l-dl-d2) 

The value of the asset at the end of each year is given by the 

present value of the stream of net money returns from that year to the 

end of the service life. If r is the discount rate (assumed constant 

over time), then for the asset being considered we have, 

PX(1-dl-d 2) 

z2 = l+r 
-- 

-4-

z3=o, (4) 

where Co is the original cost of the asset, Z1 is the value of the 

asset at the end of its first year of service, and so forth. Depreciation each year, Dj, defined as the loss in value of the asset, is given 

by 

What property do these measures of depreciation possess? In each 

year of the asset's life, it generates a certain amount of money receipts. 

The problem of depreciation accounting is to decompose these receipts 

into two components, one of which we call income, the other depreciation. 

If we define income as the portion of receipts which could be consumed 

(or withdrawn for some other purpose) and still leave the owner with the 

same real wealth at the end of the year as he possessed at the beginning 

of the year, then the depreciation method proposed is the appropriate 

one, provided that the price of a comparable new asset is not changing 

over time. 

To establish that this proposition is correct, let us examine the 

situation in the first year of the asset's life. Suppose we denote income 

in year 1, as income was defined above, by Y1. The owner's nominal 

wealth at the beginning of year 1 is simply CO, and his real wealth is 

one capital good. If the price of new capital goods of this type is 

constant through time, then we require that the owner's wealth at the 
-5-

end of year 1 be Co, so that his real wealth will not have changed. He 

will, of course, have a used asset worth Z1 at that time, and he will 

have PX - Y1 in cash. Thus, if his wealth at the end of year 1 is to be 

CO, then we must have 

PX - Y1 + z1 = co . (8) 

But PX - Y1 is what we would identify as depreciation in year 1, 

D1, so that 

Receipts in the second year are composed of two flows: (1) the 

net money return generated by the asset, PX(l-dl), and (2) interest on 

depreciation set aside in year 1, rD1. Also, the owner's wealth at the 

end of year 2 is composed of two items: (1) the two-year old asset 

worth Z2, and (2) the amount of cash set aside for depreciation in year 1, 

D1. Again assuming that the price of a new capital good similar to the 

used one has not changed, we require that the owner's wealth at the end 

of year 2 be CO. Thus, 

PX(1-dl) + rD1 - Y2 + Z2 + D1 = Co (10) 

Since D2 is PX(1-dl) + rD1 - Y2, that is, total receipts minus income, 

we have 

Similar reasoning would lead to the conclusion that D3 = Z2 - Z3 . 

With depreciation in each year defined by these expressions, it 

can easily be shown that income in each year of the asset's life is the 

same and equal to rCo. 
-6-

Thus, under the assumption of constant prices, the calculation 

of depreciation is straightforward. For our purposes, it is convenient 

to normalize the depreciation flows in the above example on the initial 

value of the asset. This gives us a set of parameters vj' 

defined as 

co - z1

v1 = cO 

z1 - 22 

v2 = co 

z2 - z3 

which characterize the pattern of economic depreciation on the asset. 

In other words, the vj depict the pattern of economic depreciation on 

an asset costing one dollar when new. Depreciation in each year and the 

value of the asset at the end of each year can then be expressed in terms 

of the original value of the asset: 

D1 = VI Co 21 = (l-V1)Co (15) 

D2 = ~2 Co z2 = (l'Vl'V2)C0 (16) 

Dg = ~3 CO z3=o. (17) 

This approach, based as it is on the assumption of constant prices, 

is rather unrealistic. Its implementation results in depreciation 

measures reflecting the historical, or original, cost of assets. In 

times of changing prices, historical-cost depreciation will be incorrect 

in the sense that the measure of income associated with it will not 

properly indicate how much of current receipts can be consumed and still 
-7-

leave real wealth intact. Nonetheless, the simplicity of historicalcost depreciation and its conceptual similarity to tax accounting practices in the U.S. are desirable features. 

To explain how this approach is applied in the present study, I 

employ the following notation: 

IFk = equipment expenditures in current prices in year t 

for industry k. 

Is = structures expenditures in current prices in year t 

tk for industry k. 

= ik Ve loss in value of one dollar of equipment used by

industry k in the i-th year after the equipment is 

acquired. 

S

V

ik = loss in value of one dollar of structures used by

industry k in the i-th year after the structures 

are acquired. 

Detk = total economic depreciation (loss in value) of all 

equipment used by industry k in year t. 

DFk = total economic depreciation of all structures used 

by industry k in year t. 

= total economic depreciation of all equipment and Dtk structures used by industry k in year t. 

The v's, which indicate the patterns of economic depreciation on 

equipment and structures, are derived from the service lives and 

capacity depreciation patterns revealed by investment behavior, according 

to the procedure described above. The index k runs from 1 to 21, covering 

the 21 two-digit manufacturing industries in the Standard Industrial 

Classification. We then have 

D:k = i=l c v;k Iet-i,k 
-8-

D = D:k + DS

tk tk ’ 

e S where \ and n

k are, respectively, the service lives of equipment and 

structures indicated by investment behavior in industry k. Summing 

the Dtk over all 21 industries, we have an estimate of the flow of 

economic depreciation for total manufacturing in year t. 

B. The Current-Cost Concept. Capital goods prices commonly change 

over time, raising serious difficulties in the measurement of depreciation 

and income. Any approach to depreciation measurement under circumstances 

of changing prices is necessarily arbitrary, We can formulate a set of 

assumptions and examine their implications, but it must be recognized 

that a different, and perhaps equally plausible, set of assumptions may 

lead to different results. 

I shall make the following assumptions for the purposes of this 

Changes in capital goods prices result solely from changes 

in prices of the outputs which they produce. 

Changes in product prices are entirely unforeseen by the 

owners of capital goods. 

The value of a capital good is equal to the present value 

of the expected stream of net money returns which it will 

produce. 
-9-

(d) Product price expectations are completely inelastic. 

That is, actual or potential owners of capital goods 

expect present prices of products to prevail into the 

indefinite future. 

We shall develop the implications of these assumptions in a fashion 

which parallels the discussion in the previous section. 

Suppose an individual owns a new capital good for which he paid 

C0 dollars, The capital good has a three-year life, and its capacity 

depreciation in year j is d

j' 

The current price of output produced by 

this piece of capital is P

0' which the owner expects to remain at this 

level. Thus, at the time of purchase, the owner anticipates that the 

value of this asset at the end of each year will be 

POX + POX(l-dl) + POX(l-dl-d2) = ­ cO l+r (l+r) (l+r) 

POX (l-dl-d2) 0 - z2 - l+r 

We now place a superscript "0" on Z1 and Z2 to indicate that they 

are anticipations held at the end of year 0. The actual value of the 

asset at the end of year 1may not be Zo1' however, owing to an unforeseen 

change in the product price. If the product price turns out to be P

1' 

in year 1, and if participants in the capital-goods market revise their 

expectations and believe that the future output price will be P

1' then 

the value of the asset at the end of year 1will be 
- 10 -

Thus, an unexpected change has occurred in the value of the capital good. 

Note also that a new capital good of the same type should sell at the 

end of year 1 at the price 

c1 = - + 

PIX(l-dl) 

+ -PIX( 1-dl-d2) plx (25 1

l+r (l+r) 

If the owner of the capital good is to have the same real wealth 

(that is, one capital good) at the end of period 1 as at the end of 

period 0, his nominal wealth at the end of period 1must be C1' His 

nominal income in year 1 is then implicitly defined by 

PIX - Y1 + z; = cl, (26) 

so depreciation in year 1 is 

D1 = C1 - 2'1 . However, given the definition of the v in the previous section, we 

j 

see that 2; = (1-v ) C 11 and 

c1 D1=vC =vC (-). 11 10 co 

The expression v

10 C is the historical-cost depreciation in the first

year on an asset purchased at the end of year 0. The factor (C1/Co) 

inflates this historical-cost depreciation to the level of capital 

goods prices prevailing at the end of period 1. I shall refer to such 

a depreciation measure as current-cost depreciation. The form derived 

here for the first year is in accord with a frequently heard policy proposal, namely, that firms should be permitted to adjust their historicalcost depreciation to reflect the level of current capital goods prices. 
- 11 -

However, moving on to the second year, the situation is no longer 

so simple. 

Suppose that the price of output changes in year 2 to P2 and that, 

as a consequence, the price of a new capital good of the original type 

changes to C2 at the end of year 2. Income in year 2 is implicitly 

defined by 

2 P2X(1-dl) + rD1 - Y2 + D1 + Z2 = C2 , (29) 

2 2 0 where Z2 is the market value of the two-year old asset and Z2 Z2 . In particular, we have 

P2X (l-di-d2) 

z; = l+r e 

Depreciation in year 2 is then 

D2 = C2 - D1 - Zg . (31) 

2 Again recalling the definition of the v -v ) C 3' we have Z2 = (1-v 122 

so that 

= v c + v1c2 - VlC0(T)I 

22 

c2 c1 = v2c0 (-1CO + [v c (-1c2 - v1co(q)1 ' 1 0 co 

Depreciation in the second year contains two elements. The first 

is the historical-cost depreciation on a two-year old asset revalued to 

reflect the price of a new capital good at the end of year two. The 

second is the first-year historical-cost depreciation valued at year 2's 
- 12 -

capital goods price less the same historical-cost depreciation valued 

at year 1's capital goods price. This second element can be interpreted 

as an adjustment factor for the first-year depreciation, taking account 

of the change in the price of a new capital good between years 1 and 2. 

By the same logic, depreciation in the third year can be shown to 

be. 

The three components of D3 may be interpreted as follows. The first 

is the third-year historical-cost depreciation revalued to the current 

price level. 

depreciation required to revalue it to the current price level. 

The second is the adjustment of second-year historical-cost 

And the 

third is the adjustment of first-year historical-cost depreciation required 

to revalue it to the current price level, recognizing that it had already 

been adjusted to year 2's price level in calculating depreciation in 

year 2. The concept of current-cost depreciation implied by our assumptions 

does not merely involve the revaluation of historical-cost depreciation 

in each year to reflect the current price of a new capital good. It 

involves this revaluation plus continued adjustments of past depreciation 

estimates to place them on a current-cost basis. Depreciation over the 

service life, according to this approach, sums to C which is the cost 3' 

of purchasing a new capital good of the original type at the end of 

year 3 (the end of the service life).Z' In other words, the present 

concept of current-cost depreciation leads to a stream of depreciation 

charges which sum to the eventual replacement cost of the asset. 
- 13 -

To show how this approach is implemented in the current study, 

I shall use the notation given in the preceding section. Additionally, 

Csk can be defined as the price index for new equipment purchased by 

S industry k in year t, and ctk as the price index for new structures 

purchased by industry k in year t. We then have the following expressions 

for current-cost depreciation: 

e 

e nk e Ie c:lC

Dtk = Ci=l vik t-i,k cz-i,k 

e e e 

n -1 e ik e tk-$-l ,k

+ Ck vik j=i+l 't-j,k Ce 

i=l t-j,k 

S s -cs 

n

Ck IS 

'tk t-l,k 

j=i+1 t-j,k cSt-j ,k 

Snk-1 

+ C

i=1 vsk 

S 

Dtk = D:k + Dtk . 
- 14 -

111. ESTIMATES OF ECONOMIC DEPRECIATION AND PROFITS 

A. Estimates of Depreciation. Table 1 presents estimates of 

historical- and current-cost depreciation for 1947-71, prepared according 

to the preceding formulas. Only the totals for manufacturing as a whole 

are given; the detailed estimates by industry and by type of asset appear 

in appendix tables C.l - C.3 (historical cost) and C.5 - C.7 (current 

cost). In addition, Table 1 gives the BEA series on capital consumption, 

which reflects depreciation reported on business income tax returns. 

(1) Historical-Cost Estimates. At the beginning of the period, 

the historical-cost estimates exceed the BEA figures, since many assets 

acquired during World War I1 were amortized under emergency provisions 

enacted during the war. By 1951-52, the two series do not differ significantly; but the combination of accelerated amortization of emergency 

facilities during and after the Korean War and of accelerated depreciation 

beginning in 1954 created an excess of tax depreciation charges over 

historical-cost estimates by about 20 percent. Adoption of the guideline 

lives in 1962 once again boosted tax depreciation charges, eventually 

to levels exceeding my estimates by about 45 percent. The impact of the 

Asset Depreciation Range (ADR) system, adopted in 1971, appears to be 

rather small, but additional observations are required before conclusive 

judgments can be drawn. 

(2) Current-Cost Estimates. The erratic behavior of the currentcost estimates is striking. The formula used in computing them reveals 

that the current-year change in prices of new capital goods plays a 
-

Year

1947 

48 

49 

50 

51 

52 

53 

54 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

67 

68 

69 

70 

71 

- 15 -

Table 1 

Comparison of BEA and Coen Estimates of Capital Consumption, 

Total Manufacturing, 1947-71 

(Billions of Dollars) 

Capital Consumption Excess of BE2 over 

Coen Coen (percent)

BEA Historical Cost Current Cost Historical Cost Current Cost 

2.418 2.749 10.103 -12.0 -76.1 

2.855 3.182 5.693 -10.3 -49.8 

3.242 3.620 4.819 -10.4 -32.7 

3.492 3.869 8.348 - 9.7 -58.2 

4.044 4.125 11.298 - 2.0 -64.2 

4.698 4.634 8.164 1.4 -42.5 

5.567 5.125 7.520 8.6 -26.0 

6.372 5.585 6.746 14.1 - 5.5 

7.171 6.024 8.850 19.0 -19.0 

7.741 6.440 14.161 20.2 -45.3 

8.551 7.154 13.966 19.5 -38.8 

9.103 7.745 10.011 17.5 - 9.1 

9.426 8.045 10.810 17.2 -12.8 

9.831 8.249 9.792 19.2 0.4 

10.405 8.612 10.679 20.8 - 2.6 

12.189 8.854 11.576 37.7 5.3 

12.765 9.176 11.582 39.1 10.2 

13.734 9.565 13.073 43.6 5.1 

14.693 10.073 13.884 45.9 5.8 

15.584 10.945 15.682 44.9 1.1 

17.354 12.222 18.898 42.0 - 8.2 

18.977 13.222 19.409 43.5 - 2.2 

20.681 14.095 26.356 46.7 -21.5 

21.714 15,146 29.212 43.4 -25.7 

23.440 16.037 32.705 46.2 -28.3 
- 16 -

crucial role in detehining year-to-year changes in the series, Thus, 

the high rate of inflation immediately following World War I1 pushed 

the estimates to levels greatly exceeding both tax allowances and my 

historical-cost estimates. As the postwar inflation subsided, the excess 

of current- over historical-cost depreciation diminished although it 

remained large; however, the Korean inflation once again widened the gap. 

Moderation of price increases in the 1954 recession, in conjunction with 

the introduction of accelerated depreciation for tax purposes in that 

year, brought tax allowances and current-cost depreciation into fairly 

close alignment, but only until prices began to rebound in the mid-1950's. 

During the period of sluggish activity and stable prices extending from 

the late 1950's to the mid-l960's, current-cost depreciation grew slowly 

(it even fell in two years). As a consequence, tax depreciation actually 

overtook current-cost depreciation for a few years, and the two figures 

were nearly identical in 1966. Finally, the inflation commencing in the 

Vietnam War period again generated very high levels of current-cost 

depreciation, with tax allowances falling 28 percent below current-cost 

depreciation by the end of the period. 

It is interesting to note the strong countercyclical movements in 

the current-cost estimates. During periods of rapid economic expansion 

and high employment, prices rise relatively sharply, thus augmenting the 

depreciation estimatee. The retardation of inflation during recessions 

generally reverses this effect, although 1971 stands as an important 

exception. By contrast, the measures based on historical cost display a 

rather smooth upward trend. Hence, if firms were permitted to depreciate
- 17 -

assets on a current-cost basis similar to the procedure employed here, 

tax depreciation allowances would become a destabilizing influence on 

aggregate economic activity. When the economy is booming and prices are 

rising, the rapid growth in depreciation allowances would reduce business 

tax liabilities below what they would be under historical-cost accounting. 

As the economy weakens in recessions, stable or declining prices would 

reduce current-cost depreciation, and would enlarge tax liabilities to 

levels above those associated with historical-cost accounting. 

(3) Estimates by Industry. The detailed estimates by industry 

contained in the appendix display widely varying patterns which are 

difficult to summarize in a few words. Some salient points may be noted, 

however, My historical-cost estimates exceed tax allowances in 1947 in 

ten of the 21 industries covered, but the various liberalizations of tax 

allowances during the 1950's and early 1960's vastly changed the situation. 

By the mid-l960's, every industry was enjoying tax allowances which exceed 

my historical-cost estimates, and this relationship persisted through 

1971, except in the rubber industry. Two industries - tobacco and nonelectrical machinery - appear to be receiving especially favorable treatment in 1971. On the other hand, current-cost depreciation exceeded tax 

allowances in 1947 in all but two industries - lumber and miscellaneous 

manufacturing. Liberalization of tax allowances, in conjunction with 

changes in inflation rates, brought tax allowances into line with currentcost depreciation by the mid-1960's in most industries, the notable exceptions being textiles, paper, rubber, primary metals, transportation 

equipment, and miscellaneous manufacturing. The high inflation rates 
- 18 -

toward the end of the period again lead to substantial excesses of currentcost over tax depreciation in all but two industries - tobacco and nonelectrical machinery. Note that the two industries that appear to be 

most favorably treated in 1971 on the basis of the historical-cost estimates also appear to be most favorably treated on the basis of the currentcost estimates. However, the least favorably treated industry in 1971 in 

the former case is rubber, while in the latter case it is petroleum. 

B. Estimates of Profits. My estimates of historical- and currentcost depreciation can readily be used to derive new estimates of profits 

'in manufacturing industries. In keeping with the BEA profits series to 

which I wish to compare my own, profits are defined as gross product 

originating less indirect business taxes, compensation of employees, net 

interest, and capital consumption allowances. The data used in calculations 

are those supplied by the BEA, except that I substituted my series on 

economic depreciation for the BEA series on capital consumption. 

Table 2 presents the BEA and my own profits estimates for total 

manufacturing. Detailed estimates by industry appear in appendix tables 

D.l - D.2 (historical cost) and D.3 - D.4 (current cost). Of course, 

whenever my estimate of economic depreciation exceeds BEA's capital consumption, my profits estimate must lie below BEA's, and conversely. The 

historical-cost based measures indicate overestimation of profits by BEA 

by about 2 percent in the period 1947-50, while in 1951-52 our estimates 

do not differ significantly. Continued liberalization of tax depreciation 

after 1952 leads to growing underestimation of profits by BEA, with the 

underestimates reaching about 28 percent by the end of the period. When 
- 19 -

Table 2 

Comparison of BEA and Coen Estimates of Profits 

Total Manufacturing, 1947-71 

(Billions of Dollars) 

Excess of Coen 

Profits Over BEA (percent)

Coen 

Based on Based on Based on Based on 

Historical-Cost Current-Cost Historical-Cost Current-Cost 

-

Year BEA Depreciation Depreciation Depreciation Depreciation

1947 

48 

49 

50 

51 

52 

53 

54 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

67 

68 

69 

70 

71 

13.128 12.797 

16.243 15.916 

15.352 14.974 

19.785 19.408 

23.568 23.487 

20.844 20.908 

21.006 21.448 

18.395 19.182 

24.144 25.291 

22.542 23.843 

21.903 23.300 

17.452 18.810 

24.312 25.693 

22.586 24.168 

21.319 23.112 

24.615 27.950 

26.760 30.349 

30.410 34.579 

36.889 41.509 

40.082 44.991 

36.316 41.448 

38.709 44.464 

33.036 39.622 

23.798 30.366 

26.604 34.007 

5.443 -2.5 -58.5 

13.405 -2.0 -17.5 

13.775 -2.5 -10.3 

14.929 -1.9 -24.6 

16.314 -0.3 -30.8 

17.378 0.3 -16.6 

19.053 2.1 - 9.3 

18.021 4.3 - 2.0 

22.465 4.8 - 7.0 

16.122 5.8 -28.5 

16.488 6.4 -24.7 

16.544 7.8 - 5.2 

22.928 5.7 - 5.7 

22.625 7.0 0.2 

21.045 8.4 - 1.3 

25.228 13.5 2.5 

27.943 13.4 4.4 

31.071 13.7 2.2 

37.698 12.5 2.2 

40.254 12.2 0.4 

34.772 14.1 - 4.3 

38.277 14.9 - 1.1 

27.361 19.9 -17.2 

16.300 27.6 -31.5 

17.339 27.8 -34.8 
- 20 -

I speak of an "underestimate" here, I mean the following: if firms had 

calculated historical-cost depreciation allowances consistently at rates 

implied by revealed service lives and depreciation patterns, then (with 

other things equal) they would have recorded profits 28 percent higher 

in 1970-71. 

A different picture emerges from the current-cost based estimates. 

In this case the BEA profit series exceeds my own by substantial margins 

until 1954. The inflationary period in the mid-1950's once again leads 

to large overestimates of profits by BEA, but from 1958 through 1968 the 

two series are quite similar. Then with the resumption of high inflation 

rates in the late 1960's, a sizable gap reappears, with my estimate falling 

35 percent below BEA's by 1971. 

Since discrepancies between BEA profits and my own estimates simply 

reflect differences in our measures of depreciation, I shall not comment 

on the detailed findings by industry. 
- 

- 21 -

IV. ECONOMIC DEPRECIATION AND REPLACEMENT REQUIREMENTS 

Business firms frequently complain that tax depreciation allowances, which must be calculated at historical cost, do not keep pace 

with the rising expense of replacing capital goods in times of inflation. 

Of course, this argument loses some of its force if firms are permitted 

to write off assets more rapidly than is warranted by actual economic 

depreciation, even though only the historical cost of the asset can 

eventually be written off. The purpose of this section is to explore 

the relationship between replacement requirements valued at current 

prices and depreciation allowances for tax purposes. Comparisons of 

replacement requirements with my depreciation estimates are also made. 

In my work on investment behavior, I have obtained estimates of 

replacement requirements which best account for the observed fluctuations 

in gross capital expenditures in manufacturing industries. To illustrate, 

let 

d;k - capacity depreciation (loss of efficiency) of 

equipment used in industry k in the i-th year 

after they are acquired. 

capacity depreciation (loss of efficiency) of 

structures used in industry k in the i-th year 

after they are acquired. 

real (constant dollar) replacement requirements 

for equipment used in industry k in year t. 

real replacement requirements for structures used 

in industry k in year t. 

price index of new equipment used in industry 

k in year t. 
- 22 -

Cs = price index of new structures used in industry k in 

tk year t. 

The capacity depreciation patterns (the d’s) were established in my 

examination of investment behavior [3] and: 

< Ie 

C t-i,k (37) REk = 

i=O 

d:k e 

‘t-i,k 

S 

S 

nk 

RSk = C d:k ‘t-i,k 

i=O ‘t-i,k 

Total replacement requirements valued at current prices are then given 

by : 

Symming over all 21 industries, we have an estimate of replacement 

requirements valued at current prices for total manufacturing in year t. 

My estimates of current and constant (1958) dollar replacement requirements in total manufacturing for 1948-71 are given in the first 

two columns of Table 3.2’ When the current-dollar estimates are compared 

with the BEA capital consumption series in column 3, replacement requirements 

substantially exceed capital consumption for 1948-53. This finding 

might again be partially explained by amortization of defense facilities 

during World War 11, which tended to depress tax depreciation allowances 

in the immediate postwar years. From 1954 until 1962, BEA capital consumption was roughly in line with replacement requirements, indicating 

that the influence of rising capital goods prices on the cost of 
- 23 -

Table 3 

Comparison of Replacement Requirements in Current Dollars with BEA 

and Coen Estimates of Capital Consumption Allowances 

Total Manufacturing, 1948-71 

-

Year

1948 

49 

50 

51 

52 

53 

54 

55 

56 

57 

58 

59 

60 

61 

62 

63 

64 

65 

66 

67 

68 

69 

70 

71 

Replacement Requirements 

Billions of Billions 

1958 Dollars of Dollars 

6,217 4 215 

6.597 4.578 

6.697 4.882 

6.897 5.538 

7.217 5.917 

7.637 6.377 

7.908 6,642 

8.183 7.066 

8.505 7.928 

9.272 9.151 

9.483 9.483 

9.492 9.653 

9.278 9.485 

9.386 9.641 

9 308 9,660 

9.526 9.950 

9.834 10.441 

10.292 11.145 

11.214 12.497 

12.177 14.080 

12.703 15.121 

13.017 16.317 

13.503 17.915 

13.829 19.357 

Current Dollar Replacement as 

Percent of Capital Consumption 

BEA Capital Coen Capital Consumption 

Consumption Historical Cost Current Cost 

147.6 132.6 74.0 

141.2 126.5 95.0 

139.8 126.2 58.5 

136.9 134.3 49.0 

125.9 127.7 72.5 

114.6 124.4 84.8 

104.2 118.9 98.5 

98.5 117.3 79.8 

102.4 123.1 56.0 

107.0 127.9 65.5 

104.2 122.4 94.7 

102.4 120.0 89.3 

96.5 115.0 96.9 

92.7 111.9 90.3 

79.3 109.1 83.4 

77.9 108.4 85.9 

76.0 109.2 79.9 

75.9 110.6 80.3 

78.8 114.2 79.7 

81.1 115.2 74.5 

79.7 114.4 77.9 

78.9 115.8 61.9 

82.5 118.3 61.3 

82.6 120.7 60.3 
- 24 -

replacement was offset during this period by the impact of accelerated 

depreciation on tax write-offs, Liberalization of tax depreciation in 

1962 reduced replacement requirements to about 80 percent of tax depreciation charges, a relation that persisted throughout the late 1960's 

and early 1970's, despite the rapid idlation which characterized these 

years. Thus, tax depreciation allowances in 1971 were about as generous, 

relative to replacement requirements, as they have ever been in the postwar period, and the relationship between tax allowances and replacement 

has not changed much in the last ten years. 

The fourth column of Table 3 illustrates the behavior of currentdollar replacement requirements relative to my series on historical-cost 

depreciation. There is much less variation in this relationship than 

in the relationship between current-dollar replacement and BEA capital 

consumption, because my series applies consistent accounting practices 

throughout the period. However, current-dollar replacement requirements 

exceed my estimates of historical-cost depreciation in every year, the 

average excess being around 20 percent. 

By contrast, there is a high degree of variation in the relationship between current-dollar replacement requirements and current-cost 

depreciation as shown in the fifth column of Table 3. Throughout the 

period, replacement requirements fell short of current-cost depreciation, 

often by large amounts, although the two are roughly similar in 1949, 

1954, 1958, and 1960. 

In assessing these empirical findings, one should bear in mind some 

basic theoretical relationships between replacement and depreciation. First 

of all, if capital goods prices were constant over time, and if real gross 

expenditures were growing at a constant rate, then replacement would forever 
- 25 -

be less than depreciation. This is because the productive capacity of capital goods declines more slowly than their value, since their value reflects 

the discounted stream of future net revenues. A light bulb represents an 

extreme example of this; it loses no productive capacity (generates no 

replacement requirements) until the final hour of its life, but it loses 

value (generates depreciation) during each hour of its life. If a firm 

acquired a constant number of new light bulbs each hour, its replacement 

requirements and depreciation per hour would eventually be identical; but if 

it acquired a constantly increasing number of new light bulbs, its depreciation would forever exceed its replacement requirements. 

Now suppose that capital goods prices are rising at a constant rate 

and again consider the extreme case of a light bulb. Current-dollar replacement requirements for a particular bulb will still be zero until the end of 

its service life. Yet as we have seen above, current-cost depreciation will 

be greater, relative to the case of no inflation, in each hour of its service 

life. Hence, inflation, as well as growth in real capital expenditures, can 

drive a wedge between current-dollar replacement and current-cost depreciation, 

causing the latter to exceed the former. 

If all capital goods were like light bulbs and real capital expenditures 

were constant over time, then a constant rate of inflation would not cause 

current-dollar replacement to exceed forever current-cost depreciation, since 

the total of current-cost depreciation over the life of a bulb is exactly 

equal to the total of replacement requirements, namely, the cost of replacing 

the bulb at the end of the service life. If, however, unlike light bulbs, 

capital goods lose efficiency over their service lives, then the total of 

current-cost depreciation must exceed the total of current-dollar replacement requirement8 over the life of each asset: total*,..

-%& 
- 26 -

cost of a new asset of the same type at the end of the service life, whereas 

total replacement can be thought of as the sum of the expenditures required 

each period to replace a fraction of the asset's productive capacity by 

purchasing a fraction of a new asset of the same type. Thus, in the case 

of assets that lose efficiency over their service lives, inflatLon, even 

with constant real capital expenditures, will cause current-cost depreciation to exceed forever current-dollar replacement requirements. 

In conclusion, it appears that tax depreciation allowances were not 

large enough to meet replacement requirements in the late 1940's and early 

1950'~~but they were more than adequate in the 1960's and early 1970's. 

If firms had instead been required to depreciate assets for tax purposes at 

historical costs using service lives and depreciation patterns revealed by 

investment behavior, then throughout the postwar period, tax allowances 

would not have covered replacement requirements. Finally, if firms had 

been permitted to adjust consistent historical-cost depreciation to reflect 

changes in capital goods prices, as in my current-cost measure of depreciation, then tax allowances would have been on the whole extremely generous 

when viewed relative to current-dollar replacement requirements. 
nk 

- 27 -

V, ESTIMATES OF GROSS RATES OF RETURN 

The measures of economic depreciation of equipment and structures 

by industry described in Section I1 may be used to estimate the values 

of stocks of equipment and structures held by each industry at the end 

of each year. Let Betk and BS

tk denote the book values of equipment and 

structures, respectively, held by industry k at the end of year t. In 

the case of historical-cost 

e 

nk 

e - e Btk - i=O ' ('t-i,k 

S 

nk 

where De and Ds 

are given by previous equations. 

accounting, we have 

-Det-i,k ) (40) 

In the case of currentcost accounting, we have 

e 

e - e 'Zk 

Btk - i-' 0 ['t-i,k ( e ) -Det-i,k 1 

't-i,k 

Adding the value of inventory stocks at the end of each year, we have 

estimates of total assets, excluding land and any residential structures 

held by manufacturing concerns. 
- 28 -

I have approximated the rate of return on total assets by relating 

the flow of profits plus net interest during each year to the average of 

total assets on hand at the beginning and end of the year. The resulting 

estimates of the rate of return are gross of taxes, and are shown in 

percentage and index form (1948=100) for total manufacturing in Table 4. 

Detailed estimates of book values of total assets and rates of return 

by industry are given in appendix tables E.l-E.2 (historical cost) and 

E.3-E.4 (current cost). By way of comparison, BEA estimates [4] of the 

gross rate of return for all nonfinancial corporations are given in 

percentage and index form in the last two columns of Table 4. 

My estimates of the rate of return based on historical-cost accounting are about double those of Gorman in every year. This discrepancy 

results in part from differences in coverage of the two series, but a 

more important factor is the difference between historical- and 

replacement-cost accounting, The historical-cost series also exhibits 

some striking differences in its movements during the postwar years as 

compared to Gorman's. While Gorman's estimates never regain or surpass 

their 1948 peak level, my historical-cost series peaks in 1951 and 

indicates rates of return in 1965-66 that were roughly the same as in 

1948. On the other hand, the two series yield some strikingly similar 

conclusions. They both fall to their postwar lows in 1970, and the 1970 

levels are about the same relative to the 1948 levels. Also, both series 

indicate that each of the postwar recessions (1954, 1958, and 1971) pulled 

the rate of return down to a lower level than the preceding recession. 
- 29 -

Table 4 

Estimates of Gross Rates of Ret rn 

Total Manufacturing, 1948-7l.d 

Gross Rate of Return BEA Estimate of 

Based on Historical- Based on Current- Gross Rate of Return . , 

-

Year

Cost Depreciation 

Percent 1948 = 100 

Index 

Cost Depreciation 

Index 

Percent 1948 - 100 

Nonfinancial Corporation&' 

Index 

Percent 1948 = 100 

1948 30.0 100 22.4 100 17.6 100 

49 26.7 89 22.0 98 14.8 84 

50 32.7 109 22.5 100 17.0 97 

51 34.3 114 21.1 94 16.8 95 

52 27.3 91 20.1 90 14.1 80 

53 26.1 87 20.8 93 13.5 77 

54 22.5 75 19.3 86 12.7 72 

55 28.5 95 23.3 104 15.7 89 

56 24.7 82 15.3 68 13.6 77 

57 22.4 75 14.4 64 12.3 70 

58 17.8 59 14.2 63 10.5 60 

59 23.6 79 19.3 86 13.1 74 

60 21.6 72 18.7 83 12.0 68 

61 

62 

20.2 

23.8 

67 

79 

lj.3 77 

20.3 91 

11.8 67 

13.5 77 

63 24.8 83 21.8 97 14.0 80 

64 27.2 91 23.4 104 15.1 86 

65 30.7 102 26.6 119 16.3 93 

66 30.3 101 26.0 116 16.2 92 

67 25.7 86 20.8 93 14.1 80 

68 25.8 86 21.2 95 13.8 78 

69 22.1 74 14.8 66 11.6 66 

70 16.8 56 9.2 41 9.4 53 

71 17.6 59 8.9 40 9.9 56 

a/ Gross rate of return is profits before taxes (excluding inventory valuation 

adjustment) plus net interest divided by simple average of book value of 

assets at the beginning and the end of the year. 

i' From John A. Gorman, "Non-Financial Corporations: New Measures of Output and 

Input," Survey of Current Business, March 1972, Table 5, pp. 26-27. 
- 30 -

It should be noted, however, that while Gorman's results seem to point 

to a secular decline in the rate of return, the sharp 1965-66 recovery 

in my historical-cost series casts some doubt on this hypothesis. 

The estimates based on current-cost accounting exceed Gorman's 

estimates (although not by as wide a margin as the historical-cost 

measures) in all but the last two years. However, they display variations over time that are notably different than both Gorman's estimates 

and my historical-cost estimates. The current-cost based measure scarcely 

declines at all in the 1949 recession, and by 1955 it achieves a peak 

well above the 1948 level. As in the other two series, a trough occurs 

in 1958, but at a somewhat higher level relative to 1948. Thereafter,

the current-cost based rate of return recovers even more dramatically 

than the historical-cost measure, reaching a peak in 1965 that is 19 

percent above the 1948 level. Thereafter, a precipitous decline sets 

in, carrying the rate of return to a level absolutely lower than Gorman's 

by 1971. There is even less support in the current-cost estimates for 

the hypothesis of secular decline in the rate of return. 

The detailed results by industry appearing in Tables E.2 and E.4 

reveal wide variations among industries as well as over time. Since 

data on inventories were not available for some industries in selected 

years (see Table B.3 for the missing observations), rates of return 

could not be calculated for the entire period in all cases. One curious 

aspect of the tables is the preponderance of negative rates of return 

in petroleum. Discussions with Jack Gottsegen of the Commerce Department 

confirmed my suspicion that the problem is one of industrial classification. 
- : .e'* 

.1,LData supplied by the industry is not adequate to accurately allocate 

firms' activities between mining and manufacturing, in part because firms 

follow internal transfer pricing policies that are intended to maximize 

depletion allowances in their mining operations. Therefore, the petroleum 

industry is excluded from the following discussion. 

In the early years of the postwar period, the historical-cost based 

rates of return are comparable in most industries to those for manufacturing as a whole. However, rates of return in the furniture, paper, 

rubber, stone, clay, and glass, and auto industries are significantly 

above average, while those in textiles and miscellaneous manufacturing 

are well below average. By 1971, rankings have changed and the amount of 

variation has also increased.i' Tobacco, lumber, printing and publishing, 

autos, and instruments record quite high rates relative to the average, 

while textiles, furniture, paper, rubber, primary metals, and transportation 

equipment display quite low rates. 

Variation in the current-cost measures is somewhat larger in 1953 and 

~ 

much larger in 1971.2' The industries displaying unusually high rates of 

return in the early part of the period are lumber, paper, rubber, stone, 

clay, and glass, electrical machinery, and autos, and those with unusually 

low rates of return are textiles and miscellaneous manufacturing. At 

the end of the period, tobacco, autos, and instruments show especially 

high rates of return, while paper, rubber, primary metals, and transportation equipment show especially low ones. Thus, on the basis of either 

historical- or current-cost accounting, four industries record extraordinary rates of return in the earlier years (paper, rubber, stone, 
- 32 -

clay, and glass; and autos), while two industries record extraordinarily 

low rates - (textiles and miscellaneous manufacturing). By 1971, three 

industries appear to enjoy exceptionally high rates under either measure 

(tobacco, autos, and instruments), and four exceptionally low rates 

(paper, rubber, primary metals, and transportation equipment). The 

specific characteristics of the 1971 recession no doubt influence the 

rankings inthat year, so one must be cautious in drawing conclusions from 

these comparisons. 
- 33 -

VI. CONCLUSION 

It is important to stress once again that the current-cost accounting 

procedure applied in this study is based on a very special set of assumptions - in brief, that all changes in capital goods prices result from 

changes in prices of output, that these changes are completely unanticipated, and that price expectations are completely inelastic. I personally 

consider these assumptions to be rather extreme, and I would regard the 

current-cost concept employed here as a polar case. It no doubt produces 

estimates of current-cost depreciation that are more sensitive to price 

changes than other reasonable alternatives. In the near future I hope 

to examine some of these alternatives. 

different concepts are completed, I am reluctant to draw firm conclusions 

Until comparative analyses of 

from the present investigation. 
Table A.l 

Standard Industrial Classification Codes and Descriptions of Industries 

Included in This Study 

SIC Code Descriptions 

20 Food and Kindred Products 

21 Tobacco Manufactures 

22 Textile Mill Products 

23 Apparel and Related Products 

24 Lumber and Wood Products, except Furniture 

25 Furniture and Fixtures 

26 Paper and Allied Products 

27 Printing and Publishing 

28 Chemical and Allied Products 

29 Petroleum and Related Industries 

30 Rubber and Miscellaneous Plastic Products 

31 Leather and Leather Products 

32 Stone, Clay, and Glass Products 

33 Primary Metal Industries 

34 Fabricated Metal Products 

35 Machinery, except Electrical 

36 Electrical Machinery 

37+19-3712' Transportation Equipment and Ordnance, except Motor 

Vehicles 

371 Motor Vehicles and Equipment 

38 Instruments and Related Products 

39 Miscellaneous Manufacturing Industries 

S'Referred to in later tables as "837". Total manufacturing is 

designated by a "0" in later tables. 
Table A. 2 

Service Lives and Capacity Depreciation Patterns 

Revealed by Investment Behavior 

Equipment Structures 

SIC 

Industry Service 

Capacity

Depreciation 

Capacity

Service Depreciation 

Code Life Pattern Life Pattern 

20 12 SL 20 SL 

21 10 SL 20 SYD 

22 18 GD-FIN 20 OHS 

23 10 SYD 40 GD-FIN 

24 8 SL 50 GD-FIN 

25 20 GD-FIN 50 OHS 

26 10 GD-FIN 30 SL 

27 22 SL 20 SYD 

28 14 GD-FIN 25 SL 

29 10 SL 45 GD-FIN 

30 10 SYD 40 GD-FIN 

31 10 GD-FIN 20 GD-FIN 

32 10 GD-FIN 35 GD-FIN 

33 16 GD-FIN 40 GD-FIN 

34 10 GD-FIN 45 SL 

35 10 GD-FIN 20 GD-FIN 

36 6 SL 30 SL 

37+19-371 8 SYD 40 GD-FIN 

371 8 GD-FIN 45 GD-FIN 

38 10 GD-FIN 20 GD-FIN 

39 20 SL 25 SYD 
TABLE B.1 BEA ESTIMATES OF CAPITAL CONSbWRXON, EQUIPMENT AND SIRVCTURES, 1947-71 

YFAR f 947 1948 1949 1950 lQS1 1952 1953 1954 1955 1956 

SIC 

70 3fte 433 . 497, 522 e 5790 604s 6160 666 I 741 s 761e 

21 9. 11s 13. 14, 15. 14s 17. 19. 21 s 24. 

22 131 s 157. 173s 192. 7FR. 216. 229. 260 e 267 281 

23 46. 55. 64s 650 71 s 73* 77 79c e7. 89. 

24 103.' 144s 1741 188. 229 s 242. 247. 350s 232. 304. 

?5 4ss 37. 43. 46 e 54. 57. 5R s 63 71 . 71

26 114s 140. 162* 177, $136. 233 266a 314. 306. 423e 

27 82. 163. 123? 135, 151.. 161 175. 164. 217s 235. 

28 tlbe 279. 331* 374, 435. 548s 672. $01 0 931 987. 

29 124s 107s 148. 135, i7R. 1358 156. 276. 252. 351 

30 6F 65 58t 60. 80 s 90 103. ll8r 142, 157. 

31 20 @ 23 260 24. ?k s 28e 27 26 29 33s 

32 848 lP5. 121. 136s 159s 186. 230s 7500 200. 305s 

33 325. 352. 384B 422. 514. 711. 1057e 1229. 1313s 1347,

34 150e 164. 179s 192. $34e 2648 296. 318- 361 e 362s 

35 214. 258s 291 319, q76 441 s 493. 566 649. 711. 

36 83. 1114. 120. 136. 157s 187. 226e 256. 304s 342e 

877 55 62. 71? 68 9f4s -137. 168s 187, 204. 220s 

371 132. 154. 167. 190. ?do. 234s 309. 374s 433e 519. 

38 19- 21 e 23s 27. 47. 56 60. 66e 79s 107. 

39 54e 71 e 74. 69s 77. 81 * 85. 90. 104. 112. 

0 241Re 2855, 3?42e 3492 4544s 4698e 5567. 6372. 7171s 7741 

YEAR 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 

SIC 

ZrJ loel . 1134. 1298s 1323. 1426s 1487 16878 1618. 1716s 1933e 

21 4n. 42 52! 59. 60s 

389. 61 66. 70 70. 118e 

22 29Fe 320 339. 349(I ?The 425. 472s 484. 616s 

23 92s 167, 121. 123. 134. 144. 169. 1R5r 204e 193. 

24 339s 331. 347. 353s 417s 488. 450e St8 e 5221 557. 

25 91. 92 99. 91 93s 111. 110. lEOe 124. 152s 

26 568a 672s 750 75s. e23e 835. 879. 944. 1004. 1074s 

27 34c . 355s 430* 460. 567. 534. S63e 609. 680. 758. 

20 1244. 1366s 1660. 1768. 181Ee 1953. 1998. 2080. 231dr 24340 

29 413s 419. 4698 603. 721 834. 879. 962. 1100s 1093s 

30 224 249s 297r 309 31A. 334. 353. 397. 409. 536-

31 42 38, 37! 51 47. 49. 56 59s 55s 64. 

32 53R. 549. 633. 653. ton . 728. 731 s 759. 757s 975. 

33 1328s 1384. 1723r 1778, 104R, 2@22e ,lfift. 2361 25101 2704. 

34 501 @ 523s 64Re 667, 677. 742e 779. 870B 97Rs 1005. 

35 945s 1F08. 1159. 1122. 1~4. 1416. 14834 1763s 1895. 2132. 

36 460s 522. 591- 664 701 757e 871. 16428 12Q7s 1597s 

837 392s 404. 445: 483, 515. 550 e 5944 e64. 1699. 896s 

371 621 . 615. 740. 768 794# 856. 1048. 1148. 12?/4, 1!05* 

30 IhQe 299, 232. 256, 737. 776s 328, 3890 46: 507. 

39 116. 119. 130. 156. 127e 115. 114. 140. 232. 

0 121891 12765, 13734, 14693, 15854, 17354. ie977, 20681 

1957 1958 1959 

809. sa9. 1045.' 

27s 31 36 

299. 289s 282 s 

4%.) 93. 95. 

3301 

'0 

295s 

78. 3220 

87. 

480 9 531e 541. 

265. 295 911. 

1058, 

443. 

1144. 

451 

1852s 

462. 

140s '213s 213s 

35e 36s 36 I 

3st. 478. 484. 

1400s 1290. 1212s 

391s 437. 453. 

780 79s. 910. 

360s 431s 425. 

261. 317. 351 * 

633. 640e 623. 

116s 134. 143s 

124.

essi. 

133. 

91.03s 

136 

9426: ~ 

1976 1971 

200R. 2189s 

158s 173. 

65R. 7C9. 

195. 227 s 

6498 73a. 

132. 141. 

1097. 1192s 

717s 791o 

2564 e 2819. 

1122. 11938 

570 s 614s 

59 s 62 

9E9s 1037,

2663 2601~ 

1029. 1162. 

2728e 3027. 

1767s 1781,

1127. 11368 

963. 993. 

249. 360s 

259. 2?S. '21714s 23443, 
TABLE 8.2 BEA ESTIMATES OF PRJFIT-TYPE INCOME, 1947-71 

1 YEAR 1947 1948 1949 1950 1952 1953 1954 1955 ' 1956 1957 1958 1959 

SIC 

251 1596; 2119. 1888. 1729e 1959e ?026* 1886 2363 e 1903. i95i . 2230. 2518. 

21 134. 1P4e 246; 207. 269 e 363, 341. 344. 364e 412. 471. 557. 

72 14C50 1478. A01 * 704, 711. 504. 773. 52he 523. 406. 423. 608e 

23 686. 535. 479: 936 e 561. 482. 420. 444 e 500. 386, 489 e 416. 

34 731 e 879 e 600: 901. 721 e 654. 629. 87C D 91'5. 587 612. 822. 

25 39 e IR9. 2C6e 224. 277. 206. 214. 283. 316. 291. 198. 267. 

76 945. 875. ?Oh* 1044. 1149. 1106. 1085. 1274. 1569. 1219r 1057. 1311. 

27 761 746, 7506 757 ROPI 1358. 851. 1016- 1042. 1117e 924 e 11321 

7e 1250. 1703. 1814~ 2268. 2320. 13217. 2751 3081 e ZR52e 2868. 261 1 e 3649, 

79 708. 670. -17. 258. 42 315. -1170 6. -5 e -85l e -1081. -bey e 

30 212. 1R6e 159; 186. Sloe 443. ?49 e 364. 4951 420. 401. 484. 

31 142. 234. 338, 61 e 194. 157. 186. 127. 169. 160. 101. 116e 

32 45A . 551 e 595. P94. 753. 875. 954. 1333. 1244. 1123e 1075, 1369e 

33 1?66e 1765. 1397; 21 02, 1767. 2399. 1504e 2701 e 2744. E957e 17460 2378, 

34 783. 976. 792. 1259. 1128e i057e 1@14* 11 13. 1136. 1193 e 1037r 116ie 

36 597 . 6.79. 753: 1193e 1523. 'I384 e 1209. 1629 0 1148. 1533. 1383. 1R31e 

877 -21te 132. P09e 322 e 675. 780. 994. 761 e 610. 998. 652 e 427. 

371 94P e 1231. 20260 3024. 2P2be 2466. 1916. 4@17e 19930 2338. 625. 2745 0 

?R 71 e ?Re 7 39. 183. 309. 31Re 374r 399r 429. 346 0 407. 604. 

387. 

35 lnl6r 1319. 1389. 1657. 2605. :?I 09. IR87e 17350 2355 e 2153. 15450 2219. 

39 292. 376. 349. 287. 275. 35Pr 340* 32he 346. 24312. 

0 1312Re 19785. 20844e 2100be 18395. 24144. 22542, 21903. 17452. 

1960 1961 1962 1963 :966 1967 1968 1969 1970 1971 

2390. 2443. 23579 2702. 3179. 3082r 27610 3458. 3180. 

556. 599s 651 . 723. 682. 725 e 747. 861 . ,916. 

646. 476 e S9?* 584. 730. 957. 102le 88s e 791 e 

577 . SQ4, 605? 616. 9430 996. 910. 871. 1009. 

660. 562. 644. 778. 794. 1219. 1407. A430 875. 

759. 267 e 794. 309. 482. 439. 528 e 351. 303. 

175r. 1 IPI e 11 e.?? 1031. 13R6e 1516. 15460 1073e 842-

1197. 1111. 1228. 1170. 1871. 2099. 209Re 1742. 1064. 

3326. 33POe 3428. 3574. 4636. S?9R* 44380 3999 4380 e 

-549. -735. 431 e -633 e 598. 7%. ,697. -746 e -121 1e 

486. 461 e 471 e 6R9 e RORe 281 465 

31 193. 89. 190. 224. 332. 194. ' 2131 156. 

72 ln9Se 1@36r lploe 1125, 781 ,1091. '764e 951 e 

33 2029. 1389. 1437. 1727. 2786, 1351. 732 . 3* 931. 1166. 1350: 1266. 7604. 2043- 126Re 

35 1945e 1997. 2492 e 2542 e 4313. 3586. 

75 1459. 1471 1567. 1598. 3012. 2746. 

a77 '99. 550 974. 969 1269 . -122. 

371 2904 e 24Pge 3997. 4pR9e 3SI I e 4385. 

38 576 . 544. 653e 776 13281 1651e i305. 

39 313. 439. 409. 319, 390 540 r ' 37Re 

!? 22586. ZIJIQe 24615. 26760. 36316. 33036. 23798 r 
TABLE B.3 CENSUS ESTIMATES OF INVENTORY STOCKS, END OF YEAR, 1947-71 

YEAR 1947 7 948 1949 1950 1952 1953 1954 1955 1956 i9si 1950 

STC 

2C 4n79. n.a. 3760. 4351. 4614. 469P. 4670 4737. 5139. 53110 5547. 

21 1118. n.8. 1225; 1335. 1606. 1628 1702. 1712. 17!R. 1527. 2064. 

22 178R. n.a. 1839. 2414, 2460 2252. 21470 2184. 2315. 222P 2086 

23 1257. n.a. 1217: 1677. 1533. 1SS5. 1464. 1617. 1726. 1702. 1696. 

?4 654. n.a. 765.. 839. 1121. 1151. 1143. 1205. 13660 1270. 1285. 

25 401 n.8. 366: 516. 571 596. 582. 664. 7150 691a 685 

26 714. n.a. 669. 787. 1055. 1089. 1091. 11799 1367. 14411 1441. 

t7 n.a. n.8. n.8. n.a. n.a. n.a. n.a. n.a. 816. 1160. 11690 

28 2063. n.8. 2102; 2291e 3056. 2948. 2653. 3031 e 3321 3072. 3003. 

29 889. n.r. 1185? 1229. 1436. 1627. 1430. 1481. 1673. 1084. 1676 

50 414. n.8. 40P. 406. 64Aa 618. 590. 692. 734. 957. 928. 

31 508. n.a. 461; 586 l 497. 510. 489. 5080 528e 529 e 531 

32 495. n.8. 565: 635. 776. 823. A06. R78. 1013. 1263. 1232. 

33 1968. n.a. 2210* 2476. 3278. 3649. 3648. 4118. 4926. 5371 5451. 

34 150or n.a. 1566~ 1878 2442. 2741 2482. 2943 3348. 3768 3546 a 

35 3354. n.a. 3074t 3623. 52RR. 5294. 4698. 5345. 6526, 5974. 5397. 

36 1490. n.a. 1237? 1593. 2735. 2P26. 2472. 2763. 3177. 3707 e 3383. 

837 1149. n.a. n.a. 1446. 1827. 1960. 1605. 2234. 2193. 2146. 1922. 

37 1 12280 n.8. 213n. 1076. 3181 40010 3059. 3832. 4715. 4871 4436. 

38 429. n.8. 460~ 516, 761 797. 747.: 798. 896, 1000. 984. 

39 631 n.a. 622. 798. 1823. cow. 1R53. 1795. 1756. 1582. 1536. 

F 25R97. 28543. 26321 31078, 41136. 43944. 41612. 45060. 50642. 51871, 50070. 

YEAR 1960 1961 1963 1965 1966 1967 1968 1969 1970 1971 

STC 

2p 

21 

5761 e 

2290. 

6171. 

2584. 

6761 

2407. 

6753. 

2377. 

72400 

2304. 

7749. 

2378. 

8282. 

2324. 

86019 

2299, 

9047. 

2201 

9601. 

?P 2740. 2361 2567. 28@@. 2967. 3@93. 350%. 3556. 3518. 

23 1783. 17~1. 2165. 2469. 1672. 2753 v 31350 3281 3308 e 

74 1329 1261. 1553 1341- 1466. 1466. 1600. 1861. !R47e 

ZS 

76 

717. 

1‘=5P. 713. 

15Fl6. 

A270 

1759. 

9?2. 

1937. 

IOAO. 

2176. 

1130. 

2763. 

1222. 

2313. 

1417. 

2bOR. 

1465. 

2745 

77 1268. 1279. 1315. 1476. 1667. 1860. 200s. 2203. 2214. 2293. 

ZR 3376. 3463. 3826. 443R. 4997. 5349. 5585. 6237. 6765 6923. 

29 1789. 1760 1018. 1R@S. lR61. 2@3O. 2113. 2S70a 229 19 2408. 

31 560 573. 552. 610. 667. 654. 7100 754 a 729 e 

32 

33 

34 

144n. 

5796. 

3618. 

I447 

6173. 

3637. 

1522. 

6057. 

3954 

1681 

6582. 

4kR7. 

1P03. 

7470. 

5430 m 

18519 

R@Ol

5bS4. 

1935a 

7989. 

6157. 

2052. 

8512. 

6537. 

2247. 

9349. 

7096. 7342 a 

35 5095. 5879. 6R03 8691 1J139r 10917e 11449. 13207. 13993 13731 

3b 4145. 4356 5240 6192. 1916. 8527 8929. 9776. 10044. 9595. 

837 22r)R. 221 9. 2627. 351R. 3480. 3527 3994 40891 

11463. 

4225. 

11802. 

4215. 

11030. 

30 1046. 18F6. 1190. 1397. 1601. 1670. 1852 2046. 2156. 2210. 

371 4n25. 3869. 4876. 5457. 1595. 10109~ 11a71. -~ 38 1196. 1222. 1178. 1436 lR33. 1978. 20570 2190. 23R4 e 2473. 

39 ihc9. 1490. 1116. 1238. 13600 1447. 1581 1785. In590 19n. 

0 53R14. 54939. 60043. 68221 71965. 84655. 9OR7S. 10 1645. 102445a 
TABLE C.1 COON ESTIMATES OF 1tISTORICf.L-COSTDEPRECIATION, EQUII'MENT, 1947-71 

Yt A9 

SIC 

1947 1949 1950 1051 1952 1953 1954 1955 1956 1951 19S8 1959 

2n 1 8Ze 308. 353. 426. 447. 467. 500r 531r 562e 582. bGSe 

71 4. 9. 11. I?. 14s 16. 17e 19. 21. 24 0 26e 

72 49 111. 136. 171e 181. 185. 186. 191. 198. 202. 203r 

7.3 24. 41 43. 4R. 49. 49. 51 55e 59 64 65-

74 43. 06e 96 132. 138. 140. 147. 162. 176. 173. 177r 

75 14. 19. 20. 23e 24e 26e 27 e 29 31. 33 36e 

f6 69e 130r 153, 201 228e 256. 289. 320r 376e 416. '34,

27 121. 123. 126s 132. 131, 138s 143s 150. 157e 165. ,174,

78 217. 184. 311. 396. 457. 514. 556. 577e 625 m 663. 697 e 

79 145. 144. 145. 140. 15Se 169. 184. lace 195. 2.1 1. 708. 

30 55 72. 72. 90 101. 110. 1.19. 126s 140. 145. 149. 

31 13. 17. 18. 19- 18. 19. 20. 21 e 22e 22e 22. 32 66e 104r 117. 161. 182. 197. 213. 247r 301e 334e 343. 

33 t53. 316. 340. 41A. 500. 546. 570. 597. 670 754. 789. 

34 86s 117. 129 162. 182. 202. 223. 251 275 e 294 308,

35 1CQ. 1.17. 162. 176, 223e 256s tR7. 322. 358 e 394* 427e 446. 

36 92. 170. 1540 164- 205. 223e 255r 279s 296. 33t e 348, 347,

837 202. 13Pe 105. 95. 1 os. 117. 137. 161. 2019 232e 228. 

371 ins. 157. 164. 217. 245. 293 341 377. 461 504. 497. 

78 24 33 36. 44e 48. 52e 55e 5R * 63e 67. 

39 14. 19- 20e 24 25s 27 . 30e 33e 36 e 37; 

n 1A91 e 2538e 2733. 3339* 3710. 4062. 4410. 4746. 5297e 5696s 

YEAR 1960 1961 1962 1963 1064 1965 '1966 1967 1968 1969 1970 1971 

S?C 

29 629e 655. 683e 724s 761 811. 859e 929. 973. 1OlOe 1056. 1117. 

71 29e 31 e 34r 36e 3P e 41 e 43. 44. 44. 43r 43. 43.. 

27 t59. 271 730. 243e 294. 272. 294. 326r 344e 3590 382e 405. 

73 66 e 66. 65e 67 739 77e 89 104- 114. 1290 148. 166. 

f4 

2s 

187s 

3R e 

199. 

39 e 

197. 

41s 

POO. 

43. 

717. 

46. 

223. 

49e 

252. 

53. 

2RQ. 

59e 

291 e 

63 

312. 

68e 

345 e 

72 

363. 

80. 

27 183. 194. PF3e 213. 335 e 235. 249. 293. 313. 337. 351

* 26 457. 4~1. 501. 530. 551 587. 6481 719. 778 812. 864e 917. 

7R 71He 769. 823. 873, 936 s 1006. 1116. 135Re 1435. 1524. 1629. 

79 202. 193. 181. 178, 167. 161 163. 178. 212. 277. 320 e 365e 

30 158s 179. 194. 221 e 73R e 760s 299. 349. 366. 430e 486 e 523. 

31 23. 74. 25. 26. 77e 28. 79. 31 32 3s 36. 37e 

32 763e 3ROe 392s 4C7. *25. 449. 468. 494. 500. 513. 534. 563. 

33 783, 875. R4R. 1377. Q~9e 973. 1@63s 1201r 1314. 1410. 1485e 1561, 

34 324 336. 339. 351 . 764. 290 420. 459e 501 s 542s 597 641. 

35 468. 494. SC5. 519, =?Re f64a 624. 701e 776. 845. 931e 1003. 

36 361 e 393, 412. 439, A75, 512. 603. 742. 835. 9000 991s 1034. 

H37 t3p. 236, 240. 258 374, 296. 317. 428. S15, 564. 606. 590. 

371 490. 496, 480. 449, *57. 505. 590a 613. 628. 671 702. 

3R 77. R5. 9@* 98e 1 h6. 119. 172. 146. 161. 175s 189, 

39 45. 48, 52. 56, 60 e .?Om 77e 82; 88 * 95e 103, 

0 6n5n. 6345, 6534, 6808, 7177. 82841 9370e 10171s 10871 r 11702. 12394, 
TABLE C.2 COEN ESTIMATES OF HISTORICAL-COST DEPRECIATION, STXUCTURES,'1947-71 

YEbP 1947 1948 1949 19'50 1051 19S2 1953 1954 1955 1956 1957 1958 1959 

SIC 

2@ 91 e 111. 134. 151. le?. 176. 183. 190. 201. 208e 216r 225e 237. 

21 2e 3e 4. 5. 5e 6e 6e 6e 6e 5e Re 8e 9r 

22 16, 15. 15: 16. Iffa 20e 23 ,26e 28e 31. 34 . 37e 40. 

z3 7, 9e 10. 10. 11 e 12. 12. 12. 13. 14e 14e 14. 15. 

24 2r (I 26. 30: 31 34e 38e 39, 40. 43. 47e 51 e 51 e 55e 

25 

P6 21 e 27e 30e 32 34. 38e 40. 43. 4P e 52e 59e 67e 73e 

27 52. 56. 56. 57e 5R. 60e 61 60e 60e 60e 64e 67e 760 

28 71 e 08 r 97* 105. 112. 126, 141 e 153. 164. 174. 185e 199. 212. 

30 11. 14. 15* 15e 16. 17. 19. 200 21" 22 23 e 24 e 26. 

1. 2. 2? 2. 2. 2e 2. 2. 7e 2. 3. 3. 3. 

29 96. 117. 147. 164, 165. 169. 176. 204e 232. 251 e 288e 317. 3400 

31 4e 5. be 6, 6. 6e be 6e 6e 6e 7e 7. 7e 

32 32e 43. 47. 49e 51. 57e 59. 63e 67 e 77e 98 115. 117, 

33 173. 1P3e 1973 198. 197. 229e 268 291 e 293. 293e 314- 360. 382. 

34 18. 70e 22. 24. 27 29 32e 36e 39 b 43e 49. 51 e 55. 75 53e 66 e 74e 77e 7n. 92. 1OSe 117- 125. 127. 137e 154 

36 26e 30e 33! 35e 37e 43. 48. 54. 58e 63 690 78e 

437 101. 95. 90. 84e 79. 83. 92. 95e 94. 96. 107. 121 e 

371 45e 49e 51 e 49e I;n. 60. 71. 71. 76. 81. 94e 96e 

38 9e 10. 12* 12. 13. 15. 17. 19. 20. 230 26e 30. 

39 8e 101 11. 11. 12. 14s 14. 15. 16. 1Pe 20 e 21. 

0 858 e 977. 1@82* 1135. 1170. 1295. 5415e 1523. 1613. 1694. 1857- 2048. 2 

YFAR 1960 1961 1962 1963 1964 1965 3966 1967 i968 1969 1976 1971 

src 

7n 246e 253. 757. 270, 379. 289 294. 306. 316. 331r 354e 382e 

21 Ire 11. lle 11. 11. 11. 12. 12. 12. 11. 12. 12. 

72 43 47. 50. 56 h2e for 76. 78* 76. 73. 76e 78e 

73 16. 17. 17. 18. 19. 21 e 23. 26e 29 350 4ie 44e 

74 S? e 60. 60. 62 6R. 70. 72. 74e 75. 76e 80. 83e 

75 ?e 3e 3e 4e 4. 4r 4. 5e 5e 5. 5e 5. 

76 77. P?. 86. 91e 95. lobe 10Re 117. 127. 135. 145e 151. 

77 8c. P3. 87: 91e 94e 9Ae 102. 110. 122* 131 e 145. 158. 

78 219. 229. 241 246e ?*A e 271 e 289 313. 335. 361 e 388. 411. 

79 335. 338. 342. 339, q35e 329r 339. 347. 365. 370. 396. 417. 

3P 27. P9. 31 33 e 36. 40 45e 51 e 59e 70 81 . 91e 

31 7e 7e 7e 7e 7. 8. R. 9. 101 11. 12. 13. 

3? 120- 123. 124. 125, 17n. 12R. 133- 140. 145. 146. 15%. 157. 

-43 774. 3P3e 380- 368. 371). 374. 389. 406. 430e 453e 471 e 483 e 

74 59. 61 e 63 660 70 e 74e 79. 84. 91 97e 106. 112. 

7s 167. 172e 173. 177. 179* 187. 199, 228e 254e 275e 293e 315. 

36 89, 96e 103! 109. 116. 123e 131 146. 162. 178e 193. 206. 

~477 124. 173. 124. 127. 131 e 132. 137. 159. 179. isle 208 e 2i4. 

371 9p. 0%. 93 98. 104. 113. 139. 154. 160. 162e 173 e 175. 

38 32. 35. 39. 42e 44e 449 47. 53. 62e 72. 78e 87e 

39 24 75 e 26 27e ?Re 29e 31 e 34. 3R e 41 . 44r *4?e 

0 2199e 2267e 2320e 2368 ZO3P e 2515r 2661e 2852 3052. 3224. 3444e 3643e 
TABLE C.3 COEN ESTIMATES OF HISTORICAL-COST DEPRECIATION, EQUIFWENT AND STRUCTURES, 1947-71 

YEAR 1947 1948 1949 1950 1952 1953 1954 1955 1956 i957 1958 1959 s IC 

20 273 . 364. 443. 503. 602. 630. 657. 701 739. 778 807 842. 71 5. 11. 14. 16. 18. 20. 22 . 24 25 29 e 32. 35. il2 65 e5. 126. 152. 1921 204. 210. 214. 222* 232. 238 . 243. 23 33. 44 . 51.r 53 . 66 * 60. 61 64 66 73 78 . 808 24 63 . 91 115. 128. 170. 176. 189. 190. 209. 226. 224 8 232- 25 16. 19- 21 0 22 . 25 . 21. 28 . 30 e 31 e 

435 . 34 36 39 

. 76 91 117. 159e 185. 739. 268. 300. 337. 372- 483. 507. 27 1738 176, 179. 183. 193. 195. 198. 2030 210. 2219 232 251 78 287 347. 381 . 416. 522. 598 . 667. 720 750. 810. 862. 9108 29 241 9 254. 292. 309. 310. 331 373 . 416. 440 e 475 528 . 548, 30 66 79 e 87! 87 

24 . 1 Of. 119. 129. 140. 148. 163. 169. 175. 31 17. 19. 22 25. 24 25. 27 27 

399 . 29 

448 . 29 29 

e 32 96. 178. 151. 166. 21R. 241. 3598 280. 325. 461 33 425 I 452. 513? 538. 647 0 7671. 8370 a63 a 890 . 984 * 1114. 1171. 74 104. 137. 1390 153. 192. 214. 238. 262. 284. 322 345. 363. 35 161. 2r3. 236. 253* 3150 362. 404 447. 485. 535 8 585 613. 36 118. 158. I878 200. ?4R . 271 309. 337. 359. 401. 426. 4318 H37 303. 255. 72i! 189. 178. 197. 212. 231 8 257. 3oe . 353. 361. 

371 154. 178. 208. 213. 

78 44 . 48 . 377. 316. 364 4170 458 . 555. 6000 591. 

59 65. 71 768 80. 89 0 97 . 102. 39 30. 

3869 . 32 38 e 40. 42 46. 50 56 . 59 . 65.

0 3h20e 4634 8 51258 5585. 60240 6440. 7154- 7745 0 8045. 

YEAR 1960 1961 1962 1963 1965 L966 1967 1969 197Q 1971 

S?C 

20 

21 

R75. 

39. 

9CR. 

42. 

941 

45* 

993. 

47 

1100. 

52 . :15fi. 

54 . 1235 56 e 

1341a 

55 0 

141br 

55 . 1498, 

55 * 

72 

73 

74 

252. 

8Z. 

7444 

268. 

F2. 

259 

280-

828 

257 * 

299 e 

85 . 262 

342. 

98 

293. 

371 o 

112. 

3240 

404. 

131. 

354b 

4328 

163-

386. 

457 e 

1A98 

425 e 

$83 9 

2:o. 

446 

25 41 43. -. 44. 

621. 46 538 57 0 64 730 770 SS. 

?6 53k. 563. 588 0 687 . 755. 836. 

445 . 968 lOOflr 1066, 

?7 2630 277 291 3050 334. 351 382. 4712. 520-

78 937 . 998. 1064. 1119. 1276. 1406. 1570. 1796. 1912. 2040. 

ZF 537. 530. i23 0 517. 490. 502. 525 o 647 4 710. 782. 

3P 184. 2r8. 225. 254, 300. 344 . 400. 500. 566 . 6141 

31 3 @. 31 32. 34 . 35 . 37. 40- 46 0 48 50. 

32 483 . 5r3. 516. 532. 579. 601 634. 653 696 

33 11570 12rf3, 1227- 12'550 1347. I45?. 1607. 1862 . 1956 

34 382. 397. 402- 418. 464 702

. 751 . 498. 543. 63R. 

35 635. 666. 678. 696 e 823. 929 e 1120D 1224 

qfi 450. 489, Slh. 548. 634. 735. R87. 1078. 1183. 

377 363. 359, 364. 385. 428. 653. 587 0 755. 814. 

371 581 508. 574 9 548 . 563 o 644 744. 88i 

.?a 1090 119. 129e 1409 154. 166. 1859 253. 

39 69 s j3. 77. 83. 94 . 102. 110. 139. 

0 a749 . 8612, 8854 e 9176, io0738 1c945. 12222 19146. 
le0719 

TABLE C.4 RATIOS OF COEN ESTIMATES Or HISTORICAL-COST DEPRECIATION, EQUIlWENT AND STRUCTIJXES, 

TO I3LA ESTIMTDS OF CAPITAL CONS1Ml'TION 

YC AR 

SlC 

1947 1948 1949 1950 1952 i9sa 1954 1955 1956 1957 1958 

29 

31 

72 

t3 

24 

75 

e7743 

e71 10 

04958 

e7@91

e6152 

e3475 

e8412 

e9986 

e5415 

e7926 

e6321 

e5164 

e8906 

1eP482 

e7292 

e7942 

e6626 

e4894 

e9645 

1.1314 

-7919 

e8012 

06785 

,4765 

e9969 1 0223 e9893 

1e2955 la1600 1.1611 

oP879 ,8972 .R761 

e8178 ,7857 e7702 

e7026 ,7142 e7194 

e4435 458 1 e4438 

e9456 

1.1395 

e8026 

e7309 

e6502 

e4173 

e9707 

1e0496 

e7885 

.76n% 

e5891 

e4434 

e9634 

1.0749 

e7760 

+RAP 1 

06858 

e4819 

a8160 

le0173 

e0251 

.A205 

e7584 

e4642 

76 

27 

78 

79 

30 

31 

e7962 

281141 

1e3297 

1e9432 

1 e0926 

,8695 

e9058 

le7114 

1-2422 

2.3729 

1J2@9 

e8405 

e9836 

1'4537 

le1516 

109717 

1e5040 

e8541 

1 e 0436 

i .35a9 

le1129 

2.2873 

le4512 

e982R 

1 e 0247 1,0081 e9541 

1 e 1970 1.1154 lr0737 

-9530 ,~e95 e8326 

2.2928 211200 1.350% 

le1935 lr15R7 100949 

e8771 ,8925 e9765 

e4732 

e9374 

.7733 

1m6507 

,9833 

e9159 

e6601 

.a942 

.7604 

1e2522 

.9414 

e4249 

a9071 

e8340 

a7659 

e9060 

.A225 

e9096 

e7864 

e7535 

le1710 

e7344 

e8342 

32 

33 

34 

75 

le1615 

1e3092 

e6935 

-7521 

1.21PO 

1.2334 

e7779 

.7R73 

1e1475 

1.3369 

e7765 

en108 

le2194 

le2741 

e7944 

a7942 

1el74l 1 :0434 1e0.372 

-9101 ,7265 e6A07 

e7262 ,7226 e7479 

,7145 ,7336 e7144 

e9732 

06574 

e7255 

-6RP1 

1 e0644 

-6605 

e8110 

e6827 

1e0424 

a7028 

e8122 

e685R 

,9577 

e8636 

a7901 

07350

76 

837 

1e4278 

5e5979 

1 e3R64 

4elFR4 

1e5592 

3.1 159 

1e4679 

2.7837 

1.3239 

1e2978 

1,1997 

1.1729 

1e 1966 

le1311 

le1001 

le1347 

lo0~00 

1.1673 

le0551 

le1790 

e9685 

le1132 

371 1e16flO 1.1579 1e7451 1.1202 1eXA40 1.0222 e9734 e9621 .ea23 eR763 e9347 

38 1e7498 1-81 84 1e9329 1.7814 1e0531 1.0809 1e 0733 e9566 e7511 e7659 e7230 

39 e 398 1 -3784 e4041 e4606 e4646 a 4654 e4713 e 4443 .4492 e44r32 e4415 

1.136R 1.1147 le1166 le1079 e9863 49207 e8765 08400 -8319 e8367 e8508 

YEAR 1960 1962 1963 1965 1966 1967 1968 1969 1970 1971 

SIC. 

71 e9799 ePfR2 e7955 e8560 *8255 e8047 e7966 e4649 03499 e31a2 

72 e9696 e8270 e8581 e8799 G 8718 .A568 .a677 e7018 e1950 e6828 

73 

74 

75 

76 

t7 

ZR 

*A950 

e7212 

e4464 

e94n1 

e7742 

e7535 

e6775 

e7401 

e4458 

e7824 

,6759 

a6409 

e6874 

e7423 

e5062 

e8230 

e6621 

e6329 

-6814 

e5996 

e4763 

.~227 

a6246 

e6536 

c 6673 

$6611 

,4c)57 

,8595 

,6243 

I 7035 

e7060 

e6704 

-529s 

e8853 

e6268 

e7550 

07006 

e7013 

.5505 

e901 9 

.5099 

e7329 

e8451 

-6960 

e4785 

*qa23

e5869 

e7378 

e9673 

e6543 

e5860 

e9192 

e6729 

e7399 

e9250 

e6043 

ebOP.9 

e8359 

e6560 

e7238 

29 

30 

31 

3E 

33 

34 

35 

101994 

eR23h 

e7146 

.A979 

.A716 

e7b?5 

e671 7 

e8156 

e7123 

e6202 

e5R5O 

re567 

e8219 

e6509 

08144 

e7001 

-6260 

e6206 

e5879 

e8990 

e7236 

e7914 

e6663 

e6257 

05306 

,5717

,9484 

1.6541 

I 8225 

,6635 

,6307 

e5550 

e5457 

j1.0066 

e6697 

OR354 

e6805 

e6247 

e5271 

eq248

1e 0931 

e7630 

en165 

e6926 

,6048

e5434 

e5919 

e9330 

e7189 

,6754 

e6838 

,6353 

e5252 

e6326 

e9937 

.a156 

e6974 

e7346 

B6RR7 

,4488 

a6556 

le0001 

en062 

e6948 

,7299 

e6479 

e4356 

35 e9793 eR723 eP25R e8379 I e248 e8515 en257 e6749 e6697 e6961 

837 ,9752 

.93*4 

e6828 

eR187 

e7751 

a5581 

.7969 

a7131 

e5481 

.7777 

e6576 

e 5575 

,75R3 

6141 

4 5071 

e6792 

06479 

e4748 

e6320 

e6361 

e4525 

e8422 

e7145 

a4582 

e7254 

oRY57 

le0157 

,7076. 

18834 

,7678 

39 -5697 e6494 e6396 e7643 e7404 I PR34 e9691 e8546 e5529 e5375 a5093 

0 en391 e7264 .71au ,6904 e6856 4 6903 e7043 e6968 e6315 e6975 e6842 

20 e P 092 e7248 07507 e73qn ,..6855 e7632 e7512 -6938 e7023 e6844 
YEAR 1947 194A 

SIC 

29 39s. 437. 

21 

22 101 313.

7.

. 11. 

24 63 el. 

25 17. 

26 115. 149. 

27 320. 341 

28 376. 432. 

29 

30 

31 

277. 

84. 19. 

247. 

98. 

22. 32 123. 133. 

33 356 548. 

34 152. 

35 122. 193. 

36 112. 163. 

837 331 274 

371 135. 173. 

36 27 3s. 

39 10. 25. 

?3 42. 50 . 21 . 

96. 

n 3144 3778. 

YSAR 196n 1961 

SIC 

29 749. 745. 

21 3s. 35. 

72 322. 3r4. 

23 77. 71 

24 

25 

217. 

55 . 219. 93. 

26 564. 551 

?7 307. 2P7. 

78 947. 912. 

? Q

30 

23R 0 

187. 

204. 

193. 

31 29 78. 

32 422. 474. 

33 074. 1007. 

34 386. 3R1. 

35 578. 576 

36 400. 413. 

n37 265. 246. 

311 

38 

S89. 

94. 567. 

97. 

-. 

39 65. 63. 

0 7594. 7375. 

TABLE c.5 COEN ESTIMATES OF CURRENT-COST DZPRECIATION, EQUIPMENT, 1947-7i 

1949 1950 lS5l 1952 1953 1954 1955 1956 1957 1958 1959 

444. 455. fi77. 541 567. 566. 699. 902. 959. 830. 844. 

12* 14. 19. 15. 18. 19. 

1578 179. fR5. 211 . 245. 248. 

24 

299. 

301 

389. 

33. 

404. 

31 

328 

33. 

342. 

54. 55. 79. 56. 61 59. 70 91. 94. 82. 82 0 

113. 121. 18Z. 161. 168. 164. 194. 244. 2680 230. 327. 

29. 30. 4s. 33. 360 36. 47. 66a 66e 54. 58. 

173! 198. 799. 244. 297I 323. 401. 5260 597. 552. 574. 

P57. 256 433. 197. 22R. 723 293. 394. 405. 311. 322. 

434? 457. flR. 523. 666. 695. 43a. 1148. 121d. 999. ,117. 

224. 214. 311. 189. 216. 2030 236. 286. 298. 2?3 0 274. 

100. lot. 751 0 105. 128. 133. 156. 207. 224, 188. 193. 

23. 25 34. 23 26. 27 31 35. 456 . 36 30. 29e 

147. 153 273. 206. 233 P41 285. 357. 440. 445. 

532 606. Qrls 601 713. 719. 8790 1306. 1307. 1108. 1187. 

161. 179. Z55. 229. 236. 239. 290. 391 398. 365. 382. 

214. 243 

202. ?3R. 291 334. 348. 431 6040 618. 549. 572. 185. 3611. 236- 259. 278. 3200 403 439. 406. 403. 

214. 172. 319. 110. 130. 130. 158. 219. 264 

c22. 269 0 276. 

194? 209. 297. 267. 310. 353. 418. 543. 613. 616. 

43. 49. 69. 57. 64. 660 770 98. 98. 88 . 90 

27. 30 44. 33 37. 38. 49. 71 7; . 600 660 

3738. 3949. 5R30. 4330 1,966. 5108. 6195. 8342. 8857 7805, 6035" 

1962 1963 1064 1965 3966 1967 196R' 1969 1970 1971 

7631 798. P45. 914. 1042. 1194- 1163. 1347. 1497. 1611. 

38 * 41 43. 46 530 57. 52 59. 62 63 

329. 357, 768. 388. 481 ' 529. 436. 575. 618. 657, 

72. 73. PI. 86. 107. 130. 130. 164. 194. 219. 

113. 217. 750 

64. 245. 291. 340. 336. 398. 456 . 488. 

54. 55. 71 84. 93. 91 0 107. 124. 128. 

581 605. 639. 683. 805. 909. 908. 1065. 11908 1279, 

305. 311. $20. 350. 425. 471 308. 535. 590 o 632 

981 * 986. 1693 1217. I451 1676. 716. 1943. 2255a 2357 

198. 179. lP1. 174. 192. 720. 249. 333. 408 . 465. 

112. 734. 262. 292. 362. 435. 4640 554. 666e 691 

28. 30. 31 . 32 35. 39. 37. 45. 48 0 51 

427. 434. 471. 504. 553. 603. 6080 672. 749. 786. 

1675. 985. 1196. 1324. 1.591. 1723. 916. 2069. 2421 2344e 

386. 372. 417. 451 SOA. 573. 631 690. 823 829 

588 0 558 . 674 . 671 781 870. 9690 IC648 1263, 1292. 

434. 439. GOO. 552. 6830 A50 966. 1055. 1225. 1244. 

?54 . 258. 391 321 364 499. 003 674. 761 754. 

550. 479. 509. 498. 579. 6940 741 e 782 904. 919. 

1031 104. 119. 128. 147. 163. 182. 201. 237. 241 a 

67. 660 70. 88 e 103s 114. 117. 132. 157. 159. 

7661 7582. 8271 . 9036. 10635. 12243 12700. 1446Ac 16669e 17210. 
TABLE C.6 COEN ESTIMATES OF CiiENT-COS1 DEPRECLATION, STRUCTURES, 1947-71 

YEAR 

SIC 

1947 1948 1949 1950 1051 1952 1953 1954 1955 1956 1957 1958 1959 

20 529 e 204. 160. 375, 443. 364- 292 e 232- 295. 499. 46i B 268 304r 

21 

22 

23 

24 

7. 

67 e 

44 e 

393. 

5. 

30-

15. 

68. 

5. 8. in. 10. 8. 7. 8. 

24 t 40 o 5F. 46 44 e 40 48e 10. 32 41 e 30- 20. 13- 21 e* 

10. 222. 2R9 . 175. 85. 25 e 86. 

14-

7 3. 44 e 

270. 

14. 

74 e 

39 . 216, 

9. 

56 e 

15. 

37 e 

11. 

62 e 

19. 

69 e 25 12. 5. 4. 9. 17. ine a. 6. 8e 13- 12. 8. 9B

26 ' 14i e ?@e 35 e 101, 114. 97 r 72 54 e 79 e 149. 138. 81 e 96r 27 536. 120. 52. 198. $12. 150. 103. 67 r 94- 19nc 166. 71 e 90 

28 ' 198. 136- 124. 227 e 3R9e 261 e 230. 199. 252. 427. 411. 254. 293 r 29 1216- 269. 115. 766 . 971 621 e 351 1A2. 392, 995. 849 e 304 . 414. 

30 64 e 73e 1s. 47 . 59 e 44. 31 e 21 31 e 66. 58 e 25 e 32 

31 25. 9. 7? 1s. 18. 14- 10. 7. 10. 17. 16. 8. 9e 

32 189. 71 e 49. 143. iRr. 137- 97. 68. 101. 211. 209- 121e 139. 

33 2764 140. 290 . 673. 1007- 557. 251 . 554 e 1496. 1217. 326, 488. 

34 146. 26- 101 e 179. 94 e 65 e 46. . 72* 150. 136, 66 e 81 

35 148. 86. 149. In1 . 16R. 151- 134. 168. 277 e 267 e 178- 301 

36 194. 37. 128. 155. 117- 86 e 65 e 93 e 180. 162- 93. 109. 

R 37 447. 107. 305. 774 . 264 e 178. 110. 172. 388r 338 e 131. 166. 

371 ?95e 48: 193. 244 e 173- 119. 91e 120. 273. 244 e 97 . 117. 

38 2n e 14 23 e 29 27 24 22 e 27 a 47 4R e 33. 37 * 

39 3?. 12. 27 e 33 28 e 22 e 17. 22 e 39 * 39 * 24 e 28. 

a 6954. 10810 4399. 5669. 3834 e 2554. 1638e 26550 SA19a 5109- 2206- 2775. 

YEAR 196c 1961 1962 1963 1Q64 1965 1966 1967 1968 1969 1976 1971 

SIC 

Zn 

21 10. 13- 15* 15. 17. 1Re 18. 22 e 21 e 34. 3se 42. 

72 

23 

59 e 

15-

73 e 

?4 . 79. 

29 e 

89. 

31 

107. 

37. 

121 

40 

131e 

42. 

145. 

59 e 

137. 

61 

176. 

114-

190-

126. 

' 207. 

159. 

74 

75 

26 

27 

78 

4F. 

R. 

89 e 

75 e 

f57 * 

1PO. 

10. 

114. 

1~5. 

338. 

129-

11. 

132. 

123: 

393 e 

130. 

11. 

140. 

125. 

402. 

164. 

12. 

161. 

144. 

466. 

166-

13. 

171. 

149. 

487. 

170. 

14. 

1840 

153. 

509. 

237. 

17. 

239. 

192. 

650. 

229 e 

18-

252. 

20Ee 

670. 

456 e 

2R e 

428. 

325 o 

1092-

466. 

'30 . 466 e 

357-

1162. 

567. 

35 e 

584 . 443 . 1435. 

29 

3n 

31 

32 

33 

34 

298 

26 e 

8. 

113. 

314. 

70. 

498 l 

41 e 

IO. 

161. 

616. 

99. 

607-

49: 

11. 

186-

760; 

117. 

608. 

52 e 

11. 

188. 

750. 

123. 

117. 

63. 

13. 

317. 

003. 

144. 

717. 

69 

13-

221 

904. 

152. 

730. 

75. 

13.. 

231 e 

916. 

160. 

1002. 

103-

17-

304-

1250. 

211. 

990. 

Ill. 

17-

309. 

1206. 

219-

19170 

199. 

27 e 

554 e 

2301. 

309-

2004. 

220 e 

29 e 

594 e 

23170 

425-

2519. 

232, 

35 e 

748. 

2771. 

535. 

269 e 340. 379.1 396 e 451. 472- 486. 582. 572. 887- 928 r 1124. 

35 175. 223. 74RD 254. 3~3. 297. 315. 399. 420. 667. 728 e 908. 

36 100. 130. 152- 162, lP9. 202e 218. 285. 305- 516- ' 575. 724 6 

A37 122. 196. t39 B 244 I 394 306- 309. 443. 453 . 859 0 905. 1135-

371 84. 137. 167. 173. ?ine 222. 251 e 335. 351 e 639. 685. 851 e 

38 33 e 44. 53 * 57 o 69. 65- 70. RB 98 . 159. 177. 225. 

39 25. 32. 37. 39 e 46. 47 e 50b 65 e 69 e 120. 1330 165. 

@ 2198. 3304. 3915. 3999. 47b7. 4848- 5047. 6655. 6709. 11889. 12542 e 15495. 
TABLE C.7 COEN ESTIMATES OF CURRENT-COTT DEPRECIATION, EQUIMEXT AND STRUCTURES, 2947-71 

YFAR 1947 1948 1949 1950 1952 L953 1954 1955 1956 1957 

STC 

30 92be 604. 830s 905e 859 799. 933r 1401e 1420s 

71 15. 17: 22e 2Se 26s 26. 33* 44e 4A . 22 1680 181. 219. 257s 289. 280 . 347. 462. 47R e 

23 86 0 64. 88. 86. 80 0 72. 91 . 136e 133s

74 456 123? 344e 336. 253. 189. zao. 513. 476 w 

75 33. 34m 39e 43. 43 e 42. 55e 79e 78e 

Zh P55. 207. 300. 341s 369. 377. 479e 675, 73be 

77 856. 309. 454, 347. 332s 289s 387. 584. 565. 

29 

30 

31 

32 

73 

34 

75 

1493. 

14Re 

44. 

31?e 

2619. 

242e 

77c . 

339, 

115. 

3@e 

196. 

673. 

108. 

300. 

980. 

1470 

39e 

296e 

1895s 

279. 

392e 

811 e 

149. 

37e 

34?e 

1608. 

323 

458. 

567. 

159, 

36. 

3301 

3271. 

302. 

485. 

385. 

1530 

34b 

309. 

971e 

385. 

4R3e 

62Re 

168. 

41 e 

386 

1433, 

362. 

599e 

1281. 

273. 

53a 

597* 

2802. 541 

661 e 

1147s 

270. 

51 e 

664r 

2524e 

535e 

886. 

36 

R77 

396. 

773. 

223t 

321 * 

330 e 

477 

353-

374e 

345. 

309. 

343. 

240e 

413. 

331 e 

583 

607. 

602 

602r 

371 43n. 243 e 402. 440s 429 e 424e 53P e 816. 866 

?A 

39 

47. 

50 

57e 

39e 

72e 

57e 

05 e 

61 e 

89. 

59e 

88e 

56e 

105. 

fl . 155. 

110e 

146. 

112. 

0 10103. 4R19e 8348. 8164s 7'520 e 6746. 8850 e 14161 e 13966e 

tR 574. S57e 604. 783. 890. R94. 1090e 1575s 1621s 

446. 

A37 

YEAR 1960 1961 1962 1963 1965 1966 1967 1968 1969 '197d 

SIC 

?n 

71 

If'lne 

45. 

lCP5e 

48. 

1143. 

52. 1194. 

56 

1386. 

64. 

152Re 

71. 

1776. 

79. 

1735s 

74. 

2234. 

93e 

2425e 

98e 

22 

73 

381 e 

92. 377. 

96. 

4CA. 

101. 104. 

509. 

126. 

612e 

149. 

674. 

189s 

5730 

192. 

751 e 

278. 

799e 

320. 

74 257s 319s 343. 346. 411 e 461e 577e 564. 854e 922e 

25 

t6 

?7 

63e 

652. 

3R? . 63. 

665, 

397s 

66. 

713. 

428e 

67s 

744. 

436s 

84e 

855. 

499. 

98. 

990. 

578. 

110. 

1I48e 

663e 

109. 

1I6Oe 

590 

134r 

1493r 

862 

153s 

1656. 

947e 

ZR 

29 

39 

31 

-42 

33 

34 

75 

1199. 

536. 

213. 

36. 

541. 

13AAs 

455. 

753. 

1249. 

7Pte 

234 e 

37. 

5R6. 

1673e 

4ROe 

799e 

373. 

A06e 

761 e 

39e 

614* 

A35e 

5t3m 

8379 

1308e 

787 . 286s 

41 . 623. 

1735. 

495, 

812. 

1704e 

892. 

361 e 

46e 

725 

2228e 

603. 

968. 

1960e 

922. 

437. 

49. 

783. 

2507. 

668. 

1096e 

2326s 

1221 e 

538. 

55. 

907. 

3023. 

784. 

1T69e 

2380 e 

1239. 

575. 

55 r 

917. 

3122. 

RSO e 

1389, 

3035. 

2249s 

754e 

72 e 

'1227. 

4371. 

1079. 

17371 

3417. 

241l.e 

887 e 

77e 

1343,

4738e 

1247e 

1992, 

36 501 e 543. 586. E01 e 754. 901. 1135. 1272. 1571 e 1801. 

387. 442. 493e 502. 621e 673. 942e 1056e 1533. 1686. 

371 676, 7F4. 717. 652 720 e 829e 1040s 1091. 1422. 1549. ?a 12R* 140. 156. 160. 193. 217. 251. 280. 360 414. 

39 9n . 95. 104. 106. 135. 153. 179. 187. 252e 290e 

n 9792. 10679e 11576. 11582. 13U84e 15682e 18898e 19409e 26356e 29212r 

1958 1959 

10980 1149s 

39e 44e 

384 004s 

97e 102r 

267. 296. 

62. 67e 

633e 670r 

381, 612e 

12S3e ijio. 577. 688. 

213. P25. 

38e 39e 

561 e 504 . 1435e 1676. 

431 e 463. 

727e 773. 

499e 512. 

400 . 442r 

710. 732. 

121 e 128. 

04e 94e 

10011e 1O61Oe 

1971 

2736a 

105.. 

e65e 

378. 

1055. 

163e 

1863. 

10751 

3793e 

2984e 

974. a5 e 

1534, 

5116. 

1364, 

2200, 

i96R. 

1889. 

1770e 

466e 

323 . 32705. 
2e5900 

1.7344 

1,368~1 

1.6632 

1.2764 

1.6264 

TAB= C.8 RATIOS OF COEN ESTIMATES OF CURRENT-COST DEPRECIATION, 'AQVIRfEXT AND .STRUCTURES, 

TO BM ESTMTES OF CAPITAL CONSUMPTION 

'YEAR 1947 1968 1949 1950 l0Sl 1952 1953 1954 1955 1956 1957 1958 1959 

lSrC 

20 te6314 1 e4PCS le2151 le5905 1 ea356 i .49R5 1.3346 le2031 1e3406 1 e8404 1.7571 la!103 I e0992 

21 116335 1 e3870 1.7AO6 1 e5689 1 .QRhO 1.1690 -5243 le3915 1.5646 1.6413 1.7609 1 e2592 le2105 

22 1.2RPO e9766 ier443 le1429 1 ,W77 1.1896 io2617 le1986 1 e2m8 1 e6456 I e59(73 1,3216 1.43161 

73 1 .R6h5 l.lR90 .996Y 1.3272 1.6913 1.1733 i e 04% e9080 1,0418 1.5248 1,6201 la0246 1 

09200 

0692 

24 4e4282 lelP20 07071 1.8281 2,6SRS 1 e3891 f ,0230 e7562 .9597 1.6887 le4411 99061 

25 e7251 .E758 e7806 e8567 1.6534 07459 07440 -6639 .7721 le1111 le1164 ,7991 e7725

26 2 02340 1.4741 1.2868 1.6945 2.6524 i .4638 .3878 1.7014 1 e2421 1 e5966 1.5323 la1929 1.7278

27 10 -4338 4.4732 215158 3.3619 4.71 E5 Pel551 : ,8944 1.5720 10783R 2e4D6S 2e1333 1129PO 1.3255 

28 2.6575 2.0365 1.6639 1 .e296 2.31 34 114297 :..3238 1.1156 1.1708 1 e5960 le5317 1.0953 1 .B459 

29 12004n6 4.8236 2.3907 7.2572 10. 6?Ot $e0039 3 6351 1.3960 2.4921 3.6501 1.5451 1.0008 1 e4892 

30 2.4631 1 .8622 1.9781 2,4554 2.At45 1.6536 1.5427 1.3002 1.3219 1 e73AO le0511 

31 2 .?236 1.3337 1.1571 1,6423 1,9754 1.3347 ;e3401 1.3061 le4124 1.5982 i.4ha8 1,0493 1.0160 

32 3.7166 1.9442 1 6226 2.1793 2.E359 1eR412 I .4338 1.2356 1 3406 1.9569 1.8626 1.1740 1.2065 

33 8.0549 2.885A 1.7521 4.4916 4,QlOR 2.2619 > .2022 ,7897 1.0917 2.0804 1.1122 1 e 3826 

34 le6120 1.2~36 leh493 1,4540 1.6430 1 r?%51 !,OIR6 .P953 1.0028 I ,4948 1.3467 ,9856 1 .0222 

35 1.2633 1.1374 l.CJOS 1.2294 1,qR06 1. e 03R7 ,9838 .6527 .92?a 1.2398 1.1354 .9129 .R44?9 

36 3.6890 1,9624 1.P551 2,4259 2,6456 1 oR881 1,5253 i.32ao 1.7601 1e7040 1,5830 1.1584 1,2045

837 14.r539 7,1886 4.5252 7.0187 6.6537 ?e7296 1,8369 1,2845 1.6215 2.7604 2.3062 le2630 1,2598 

371 3,7558 1.7~32 1,4533 2,1180 2,7056 le8817 1,3fiR4 1.1346 1 .2425 1.5726 1.2621 le 1093 1.1770 

38 2.4954 2.5132 2.4603 *2,6673 2.6QF6 1.5126 1.4752 1,3315 1 e 3250 1.3549 ,9037 .R929 

39 a9282 ,5698 05265 -8201 1 *d0?5 e7482 e6942 06196 e6829 09857 e9029 e6297 a6946 

0 4 e1 781 1.9940 1 e4863 2.3907 2.7939 1.1378 I e3507 1 e0587 1 e2342 1.8293 1,6333 1 a0997 1.1469 

YFAR 1962 1963 1965 1966 1967 196R 1969 1918 1971 

SlC 

20 

21 

.A806 

le0045 

-9022 

09441 

e9324 

i .~477 

09056 

1 *O70R 

1 e0979 

1.1331 

1.0113 

1 e0510 

le1558 

07878 

1.20?6 

,6172 

le2497 

e6082 

22 

t3 

1.2074 

eR321 

1.777R 

08435 

1.30Q3 

sR7?3 

1.4389 

e8811 

1.4288 

1.0218 

1.1837 

e9389 

1e2195 

1.4406 

le2136 

1.6463 

le2213 

106669 

74 09872 .9aih ~8416 e9400 1 e0925 1.0812 1 e5326 104207 104296 

25 

76 

27 

28 

e6636 

e9507 

09942 

eP273 

e7327 

-9860 

-94R4 

e7853 

a75R6 

1 on235 

09338 

oP726 

.e265 

1.1258 

1.0269 

.9~12 

-9198 

1.2163 

IoOR89 

1.1183 

e8794 

1.1557 

08674 

1 eo303 

e8843 

1 e3805 

1 e1367 

1.2471 

le1619 

1 e5095 

1 e3212 

103224 

le1579 

1.5628 

1,3576 

1.3454 

29 

3n 

31 

le7178 

eR79U 

1 c529 

1.3053 

-9257 

08106 

1 0692 

1.0796 

00333 

1.0492 

i.2049 

-8707 

1.2693 

1.3546 

e9402 

le1259 

1.4053 

,9963 

2a058O 

1.4062 

.I e 1307 

2.1493 

1.5S46 

le3057 

2e5012 

1,5856

1.3789 

32 09707 09534 09950 1,0716 1.1954 1.1654 le2583 1.3580 1.4790 

33 1 0647 ,9760 1.1018 1.1458 1.2847 1 23Q8 1.6164 le779J 

34 e7763 07424 08133 rP579 09010 oPb95 100740 1.2229 lrll41 

35 e7218 07235 e6836 .739? e7?00 07332 08122 e7301 ,7267 

36 e9916 e9056 e9965 1.0117 1 e0892 1 e 0535 e9838 1.0191 1.1050 

837 le1077 1 .ON6 1e12R5 lolP59 1.C901 e9607 1.7110 1 a4959 1,6627 

371 -9693 OR486 .a41 6 .7915 09056 e8988 1.2864 1 e6565 1.7821 

34 e6717 ,6266 a7008 e6610 .6454 e5081 a7092 la29SO 

39 ,8757 e8133 i io604 1.3.2R5 1.5685 1.3340 1.0872 i.iie6 1,0953 

F 09497 e9073 .9449 a9892 1em90 1.0228 1a2744 1a3453 1.3953 
-11581 

COEN ESTIMATES OF PROFIT-TYPE INCOME PASED oh' HISTORICAL-COST DEPRECIATION, 1947-71 

IEAR 

SIC 

1950 1952 1953 1954 1955 1956 1957 1958 1959 

20 

21 

22 

23 

1748. 1961 2012. 1893. 2403. 1925. 

205, 265. 360. 338. 341 363. 

744. 735. 529. 3G30 579. 582. 

349. 5.74. 499. 438. 467.* 521e 

l9Ri e 

410. 

473e 

395e 

2412. 

470a 

474. 

506. 

2721e 

558. 

647. 

431. 

e4 961. 793. 725. 699. 972. 910. 691. 683. 912. 

25 

76 

77 

?8 

29 

248. 309. 237e 249. 324 356. 

1036. 1143. 1104. 1099. 1323. 1620. 

709. 770e R3Rm 637e 1030. 1067. 

2326. 2346. 2291. 23R5. 3292. 30891 

84. '1 33 140- -214. -15R. -94 

317. 

1264 

1161. 

3116,

493. 

240. 

1105. 

987, 

2893 

315. 

13509 

1192. 

3991 

-775. 

30 159. 493* 427. 238. 566 e 504. 437e 445. 522. 

31 61. 197. 160. 187. 123. 175. 166. 109. 125. 

32 864. 

1831. 721 4764. 94s. 1341 1224. 1107. 1105. 1392. 

33 198h. 2688. 1896e 3151. 3201s 3373. 1922. 2019. 

34 1298. 1200. 1139. 1094. 1212. 1204. 126R. 1129. 1751.

35 1723. 2731. 2240. 2049. 1937. ml. 2399. 1756. 251he 

36 1129. lk62. 1339e 1159. 996, 1131. 1512. 1588, 1825.

8-37 201. 634 . 751. 959. 734. 573. 941 816. 417. 

371 3001. 2177. ,459. 1926. 4033. 2054. 2416, 665. 2777. 

3i3 162. 306. 313. 369. 402. 456. 373. 444, 645. 

39 413. 392, 332. 323 416. 402. 394. 420 458 

0 1940~1. 2090~. 21448. 191821 25291 23R43r 23300. 18810. 25693r 

YEPR 1963 1965 1967 1968 1969 1970 1971 

STC 

20 3032. 3104. 35621 3509. 3353. 4056e 3871 . 21 735. 590. 696b 739. 810. 964. I034e 

?2 634. 1047. 798. 1021. lPC5. 1086. 1016. 

73 654. 829. 997. 1057. 940. 877. 1026. 

2b R69 1219. 966e 1375. 1576. 10679 1167. 

25 354 497. 538. 095. h07. 405. 358. 

?ri 

v7 1325 2026. 2098. 2364. 2411. 1977. 2136a 

SA 4223. 5541 5146. 5915. 5076. 4671 e 5159. 

79 

3? 

-547* 

526. 

706r 

577. 

1035,

686. 

5FRe 

Aloe 

-251 

844 e 

-334. 

245 

-800. 

465 

31 

32 

241 

1246. 

171. 

1367. 

351 

9'06e 

258. 

1087. 

216. 

1407. 

224. 

1063. 

174. 

1267 

33 

34 

?260. 

1515. 

3705. 

2380e 

3540 

2031 

2655c 

2794 

2193. 

2410. 

1439e 

15860 

1142. 

1666. 

35 2968, 4746. 5147. 5175. 4598. 4151. 3573. 

1165. 1497. 1494. 1614. 1672. 1162. 966 

?4 1714. 2716. 31679 3230. 3255P 2264 2286 

P37 

371 

lP67e 

5109. 

1490. 

6798e 

1546. 

5915. 

1694. 

5726 0 

19. 

4701 

-1lr 

16!7 

156. 

5399. 38 892. 1186. 1532. 1911e 1926. 1301 e 1416. 

-49 3C6 318. 394 414r 644r 498. 526 0 

n 30349. 41509. 41448. 44464a 39622. 30366 34007. 
1.0151 

1.9161 

RATIOS OF COEN EST" OF PROFIT-TYPE mcm BASED m HISTORICAL-COST DEPRECIATION 

TO 8A EYTMTlfS OF PKOFIT-TYPE INCOME, 3947-71 

WAR 1950 1955 1356

SIC 

?e 

71 

pi?

?3 

74 

25 

26 

?7 

28 

29 

fc 

7) 

39 

33 

34 

35 

36 

837 

371 

38 

39 

0 

YEAR 

Sfr. 

21 

22 

73 

t4 

?5 

76 

27 

78 

29 

3@

31 

32 

33 

34 

35 

36 

p37 

371 

38 

39 

0 

1954 

1e0038 

e9910 

1.0117 

.9967 

1.1137 

1.0413 

1.1160 

1.1251 

I 0323 1 e0239 

1 0829 

18.7064 

1.0186 

1 0342 

1957 

e9951 

1.1650 

1.0238 

1.1756 

1958 

1.0816 

.99A9 

1.1195 

1 0349 

1.1164 

1.2111 

1.0454 1 a0682 

1.1080 

1.0714 

1.1092 

1.069R 

1 0277 

1.1007 

1.08A5 

1 a 1365 

1.0036 

.9579 

1 0648 

1.0912 

1.2147 

1 r0778 

1971 

1 e2172 1e2839 

1e 0171 

.991s 

1.1002 

1.0527 

1.1174 

le1462 

14384 

1.0134 

1 .(16R5

-26e3315 1 e OOb5 

1.0101 

m9911 

1 e0567 

1.0391 

1*Qb?1 

1.1075 

e9926 

.936g

e9822 

.326* 

.A545 

1aFQ6R 

e9656 

e9450 

i.1089 

1.0432 

1.1115 

1.1638 

1.0133 

m9841 

1 E596 

1.8261 

e9550 

1.0033 

e9903 

1.2610 

1.1291 

1 a0366 1 mO394 1 e0864 

1.0370 

1.0463 

I a03FR 

1.1407 

1.0192 

1 e 0058 .~a42

1.1665 

1 -0890 

1.1167 

e967R 

a9639 

1.0041 

1.0086 

1.1614 

1.0475 

.9eq5

1.1667 

1.0602 

1 0958 

~9851 

.9397 

1e0307 

1.0621 

1.1814 1e0577 

1.~313 1.0791 1.0625 

lr123R 

, e9863 

.95Z7 

1 0335 

1 07A5 

1.2099 1e0638 

1a0396 

e9467 

e6233 

m9924 

-8847 

1 0990 

1.0857 

a0580 

.9753 

1.0052 

e9871 

1.1730 

1 e0428 

, 

1968 

1.1386 

le0196 

1 0669 

1.0613 

1.1279 

le1270 1.fl650 

1.1264 

1.1165 

7.9701 

.9551 

1 0492 

1.1513 

1.4115 

1.1605 

1 do07 1.0597 

1.3135 

1 0836 

1.1521 

1.0517 

1.1087 

1969 

1.2144 

1.0845 

1 1799 1 e0329 

1 1203 

1 15131 

1.0817 

1.1493 

1.1438 

e3600 

1 eQ444 1* 0909 

1.2901 1 e6229 

1.1794 

1 e2823 

1.1891 

-.;59p

1.0720 1.i664 

1.1921 1 e1994 

1967 

1.1205 

1.0200 

1 0926 

1.0577 

1.2192 

1.1171 

1.0781 

1.1215 

1.1099 

1.7308 

m9962 

1 .E587 

1.1599 1 e2707 

1.1254 

1.1933 

1.6514 

1.7184 

1.1151 

1.1538 

1 e0090 

1.1413 

1963 

1.1221 

1.0167 

1 0848 

1.0624 

1.1169 

1.1454 

1.1296 

1.1329 1si816 

e8635 

1.1168 1a6777 

1.1077 

1 .30@? 

1.1971 

1.1616 

1 Of24 

1.1012 

1.0451 

1.1491 

1.1469 

1.1341 

1976 

1.1729 

le1193 1r2268 1v 0073 

1.2661 

lr1557 1.OR26 

1.1346 

1.1681 

.4475 

1.0129 

I.0511 

1.3917 

1.9654 

1 e2504 

105680 1 e3474 

-0345 

1.1?@8 

1.0149 1 s 3337 

1.1820 

1 1474 

1.1462 

1.1778 

a6607 

.9999 

1 e0724 

1 e3328 

2eC598 

1 e3254 

1.3102 

oeR873 

1.0219 

le0627 

1,3799 1e2783 

i.07a9 

a9970 

1e3169 

1.2760 
837 

TABLE 0.3 COEN ESTIMATES OF PROFIT-TYPE XNZCPIE BASED ON CURRENT-COST DEPRECIATION, 1947-71 

YFPR 

YIC 

1947 1948 1049 1950 1952 1953 1954 1955 1956 1957 

20 1022. 1911e 1781e 1421e 165R 1783. 1751 2111. 1263 1339e 

%I 

22 

23 

12ne 

1368. 

646. 

1POe 

14R2e 

575. 

242 199. 2581 354. 334. 332s 344. 391* 

793. 671 670. 444. 225. 446. 342. 227e 

429. 314. 548e 479. 427e 440. 453. 335 e 

?4 

25 

26 

27 

78 

29 

378. 

51 e 

000. 

-13. 

R9? * 

-1161-

814. 

104. 

81 he 

388. 

1414. 

211. 

651 745. 627e 648. 690. 8132s 606. 441e 

215. 231 291 221. 235. 299e 303. 273. 

661 921e 1641 1003. 1022 1161e 1317- 963e

564, 438 e 6160 701 746e 846. 693, 017. 

1588e 2058. 2085. 2999. 2158. 2922 2264. 2305. 

-208. -587. -634e -96. -326 -370. -9350 *-1565e 

3n 124e 130. 1 O2e 99. 451 e 3R7e 2149 3181 379. 32?e 

31 

?7 

33 

34 

118. 

331,e 

-.172He 

h91 e 

226. 

442. 6rl. 943. 

134: 46 18Se 148. 178. 115. 149. 144. 

520. 734. 597. 775. R95e 1235. 352r 862 e 

110~e 629. 070e 2185. 1762. 2581 0 1289. 1833.

783e 1172. 10690 1051. 1047. 1112. 957. 1055. 

35 960. 1269e 1300- 1584. 2588. 2117. 1970. 1785. 2185. 2047. 

36 374. 5?90 650. 999e 1357. 1265. 1124. 920. 907. i3ii. 

-93n. -257, -41 e -87e 438o 639. 941. 636a 223# 647 

371 65('e 1173. 1950; 2812. 2014. 23469 1865. 3912. 1696. 2105r 

38 43e 66. 105. 13Re 280. 289. 352 373. 391e 316. 

39 796. 365s 317. 383. 369. 313. 309e 391 e 342. 338 o 

0 5443. 13405. 13775! 14929. 17378. 19053- 18Oiil e 22465. 16122. 16488. 

YEAR 1Q6? 1961 1962 1963 1965 1966 1967 1968 1969. 1971 

SIC 

2453. 2402. 2512. ZP31e 2Rl8e 3299. 3021. 3063. 2460. 3041 e 

21 551 0 593, 651e 726. 578. 598. 673. 721 772- 921 

72 549. 369, S23e 487 a 880. ,922. 528t 868. 886e 744 m 

73 q27e hr5. 625. 635. 801 e 999. 939. 1008e 825e 746. 

24 747e 574. 64Re 785. 1101. 979. 745e 1177- 1110. 570. 

75 207 296. 327. 333. 466e 497. 492. 454e 546e 330 e 

76 11660 ll3Ae 1219. 1042. 1324- 155he 1182. 1360. 1127. 514. 

77 1155. I D74~ 1230. 1194, 1861 2020. 1817s 2189. 1994 1512. 

7R 3371 3437. 371s. 3954e 5113. 5066e 4390. 5228. 3637. 3146 e 

79 -677e -1018. -116R*. -817. -19he 131. 339. -63 e -1853. -2035. 

30 497. 476e 522. 494 516. 624, 548. 682 590e 7360 

31 199s 90 188w 234e 160. 293 336. 265. 1901 199e 

32 1097r 999, 1C29r 1155. lP19e 974. 633e 6149 839. 4lOe 

33 1969, 1325. 1770. 2R24e 3111. 2114, 1277. -316. ,-1343r 

35 2137. 2R14e 2e52. 4529 518s. 4POTe 4816. 39660 3343. 

Th 

537 

141'. 

404. 

1572. 

9260 

1661 

950. 

2596. 

1297. 

3075. 

1303. 

2919. 

1191. 

2955. 

1333.. 

2772-

-759 D 

1646. 

-893 . 371 2RSl e 4020r 5005. 6141e SO31 e 3619s 5407. 405FIe 391. 

3R h[iRe 729 872. 1147. f530e 1466. l840e 1798. 1140. 

34 976, 1395. 1438. 2241e 2724. 2690. 2436. 1969 1041. 

39 345. 424. 343 e 277e 337. 3250 347e 520e 349. 

n 22625. 25?28 e 27943e 376.9.8 e40254 34772. 38277e. 27361e 16300,

1958 

2121. 

463. 

329 e 

487e 

640e 

2i4e 

955. 

838. 

2502e 

-1207. 

4Cle 

99e 

992 

1661e 

1043e 

1614. 

1315. 

769 e 

555. 420. 

395. 

16564 

1971 

2633. 

984. 634. 

858. 

558. 

281e 

171. 

1581e 

3406. 

-3002e 

105. 

143. 

454. 

-1929e 

1055. 

2692. 

1558. 

-929 

4506. 

1226. 

353, 

17339, 
1.n314 

TABLE D.4 RATIOS OF COEN ESTIMATES OF PROFIT-TYPE INCCME USED ON CURRENT-COST DEmECIATION 

1 0969 

TO BU ESTIMATES OF PROFIT-TYPE INCM, 1947-71 

'YEAR 1949 1950 1952 1953 1954 1955 1956 1957 

IS% -9434 -8217 -8463 ,8600 -9285 -8932 e6639 06864 

21 -9852 e9615 *9600 e9754 e9782 e9655 -9445 e9501 

22 -9904 e9610 e9424 "11 -8254 -8483 653 1 -5594 

23 -8960 e9357 -9775 0992R 1.0173 -9918 -9066 e8683 

24 

z5 

?6 

27 

28 

29 

lap849 

1.~455 

09356 

-7514 

e8752 

12-7369 

-8272 

1.0294 

e8822 

e5788 

e8690 

-2 274 1 

e8694 m9913 1,. 0 

135 

1 0523 'I ,0721 1.0989 1 0572 

-9060 e9067 -9417 -9266 

e76R1 ,8176 -8763 -8326 

e8985 e9019 -9589 .94R4 

-15e0840 --3GSO 1.9342 -61 s6696 

-7431 

e9750 

-8392 

-6647 

,7937 

187e 6361 

-7520 

-9710 

07904 

e7311 

e8039 

i.ai81 

30 06432 -5305 .RR47 -8738 -8578 -0744 e7659 . e7664 

31 

32 

-9704 

.R734 

-7473 

e8206 

-9517 ,9415 e9572 -9061 

-7922 e8860 ,9383 -9264 

-8832 

e7649 

98975 

-7495 

33 

34 

-7933 

-9848 

e2990 

-9SOP 

e4972 -91 09 1.1719 -9554 

89473 -9948 1.0328 -9991 

-4636 

08423 

-6260 

08846 

35 e9936 e9558 -9934 

1-0038 1.0442 

1e 0289 -9276 -9510 

36 

R37 

-8637 

9- 1976 

.A374 

-e2710 

-8910 ,9142 -9300 e8936 

-6489 en197 e9465 -8334 

-7903 

e3651 

e8555 

-6550 

371 e9626 -929R -9071 e9513 -9737 -9739 -8509 e9001 

-4R e 7584 -7540 e9071 e9102 -9415 r9357 -9115 ,9121

39 1.1243 1 0330 i 

.05a4 1.0906 1.1245 1.0921 1 0047 le0369 

0 .8973 ,7545 -8337 .9071 -9797 -9304 -7152 ,7528 

1 0333 

1 ~836 

1 0392 

YFAR 

SIC 

?n 

1962 

1.r658 

1963 

1eo479 

1965 

i - 0370 

1966 

1e 0507 

1967 

-9502 

1966 

-9937 

1969 

-9909 

1976 

.A794 

21 -9996 1.0046 09950 -9922 -9863 ,9949 1 0335 1.0742 

72 -8841 e8340 8797 .e318 -7228 -9071 e8676 -0412 

73 

24 

1-0336 

le0069 

lmf1313 

1.0064 

1.0235 

1.0755 

1* 0205 

1.0309 

e9957 

-9385 

1-0125 

-9652 

-9066 

9 769 1 

e8567 

e6761 

?5 1.1133 1.0787 le0610 1-0429 1.0200 1-0341 09391 

Z6 1mCi313 1.010P -9855 ,9337 -8527 *A969 87288 -4791 

27 1.0620 

1a0203 1.0194 .9926 -971 1 1.0430 ,9596 .a67a 

28 1.1062 1.0512 1.0075 -9469 e9868 e8645 a7917 

79 1-4051 1.2908 1-4185 -7514 -5667 -*A460 2-6592 2r72FIS 

30 1.~739 1.0487 -9510 .8935 ,7957 eR045 .7306 '-e1271 

31 

32 

e9897 

lmCli34 

1.0431 

1.0271 

1*02(r8 

1.00~4 

110253 

09490 

1-0106 

.P101 

1.0012 

;A621 

,9578 

-7692 

-9153 

.5365 

33 -9224 1.0247 09320 19c70 -7588 -6790 or2337 -1.8345 

34 1.1 159 1.1357 1.0659 le0474 1.0331 1.0530 "I636 ,8267 

35 

?6 

837 

li1294 

1-0032 

m95O8 

1.1220 

-9803 

1.1098 

l-QOlO 

r94R3 

1,0806

,9966 

,9454 

1-1145 

e9693 

-9387 

le1173 

-9786 

1e 0335 

1.1116 

1.0994 

6.2218 

le2781 

e9799 

2.7250 

371 1.~057 1.0238 

1e 0226 1.0454 1.0309 1.0233 -9278 -5871 

3R 1-1166 1.1232 1.0776 110784 1.1039 1.1089 1-0893 .a735 

39 

1mg362 1.076) -9731 e8902 ,8338 .ea13 a9625 -9188 

n 1-0269 1.0442 1.0219 1-0043 e9575 r9e.88 e8282 e6849 

1958 1959 

e9511 -9588 

e9829 e FE 64 

07762 ,7498 

,9952 89842 

1-0453 

1-0741 

1.0792 

e9031 -9051 

-9068 -9106 

e9582 -9842 

1.1161 1.3281 

e9996 ,9749 

-9824 -9947 

e9226 99270 

e9171 .PO50 

1-0060 -9914 

1-0449 1.0616 

e9506 e9525 

e9021 

rGR91 :E:,

100317 1, 6254 

1.1423 1.10Y31 

,9400 .9431 

1971 

,6281 

1e 0740 

re019 

e8500 

-6377 

0926s 

-2333 

-8480 

-7777 

2.4789 

,2268 

e8585 

,4777 

-4,9969 

,8390 

1.4426 

,8928 

5.2773 

-8530 

09203 

-9262 

a6917 
91345. 101789. 

COEN ESTIMATES OF BOOK VAWE OF ASSETS �ASED ON HISTORICAL-COST DEPRECIATION, END OF YEAR, 1947-71 

1950 1955 1956 1957 

TAI3LE E.l 

1949 

7485. 

1317! 

3q23e 

1477. 

1453? 

776. 

2158. 

I YEAR 

<IC 

20 

71 

?2 

73 

24 

25 

76 

77 

28 

29 

3P 

31 

32 

33 

34 

75 

36 

8-47 

371 

3R 

79 

!! 

1959 

11469,

2369. 

4618. 

2140. 

1947 

6713. 

11 85. 

271?e 

1475. 

llA4. 

761 e 

1765r 

1948 

II .il . n.a. 

n.e. 

11.a. 

Il.11. 

11.a. 

n.a. 

1953 

9032. 

1743. 

4531e 

1R3b 

?045e 

1122. 

3266. 

10342e 

1690 e 

4659 

2066. 

2394. 

13921 

4921 e 

3203r 

10174. 

5978 

1699e 

1958 

10812. 

2247 

4490. 

2009. 

2461 

1430. 

5093 

3394. 

10529. 

5956, 

1695. 

R343e 

1430. 

4300. 

1944. 

1626 

958 

2416. 

n.:i, 

6319. 

3422. 

835. 

741. 

1961 

7072. 

3397. 

5429. 

2686. 

P450e 

2485. 

865. 

1140. 

62132. 

1963 

13174. 

2649 

5307. 

2612. 

2796 

1796. 

6072. 

4210. 

13C52. 

5826. 

2387. 

749e 

4962e 

16299. 

7655e 

11038. 

8398. 

4717. 

7668. 

2135. 

19160 

125569. 

1964 

9426. 10030r 

1439. 1869. 

4527. 4722. 

1941. 2070s 

2t70. 2521 . 12590 1364. 

3Rlde 4443. 

n.:i. 275Ai 

9223. 9910. 

4451, 5326. 

1347. 1455. 

669. 699. 

3021 e 3696. 

llhi3e 13194. 

5533. 6210. 

8459. 9957e 

4664. 5296. 

36166. 3860. 

64650 7998. 

1309. 147'5. 

2252. 2259. 

2553. 

1503, 

5316-

355A. 

lOR3Or 

1838-

764. 

4558. 

151 1c. 

6936. 

9017,

6365. 

4747. 

11.:I. I1 .U . I1.:I . 11.iI. 

8694. 

4434. 

IEOO. 

654. 

7544. 

10967. 

hR7R. 

R012. 

4480. 

3249 

6014. 

1239. 

2681e 

85178. 

5396. 

2622. 

789. 

637. 

1445-

5775. 

2A-58. 

6790. 

239?. 

7404. 

2377s 

70". 

917. 

4998R. 

5921y 

3402-

807. 

619. 

1776? 

6696. 

2R46? 

4R21 e 

2260. 

n.a. 

3462. 

787. 

944. 

55789. 

n.a. 

n.a. 

n.a. 

n.n. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.n. 

n.a. 

n.a. 

n.a. 

56179. 

702. 706.

4337e 

15271 

6744. 

9330. 

5752. 

3842. 

7600-

1645. 

2119. 

107594-

43248 

14784. 

6846. 

9772. 

6019. 

4036. 

8275 

1632. 

2107. 

107436 

19id 

1853A 

245s 

8365e 

433Pe 

3993. 

317s. 

10020. 

7108. 

23299e 

8215. 

4904r 

1040. 

6906. 

26034 

13632e 

22344e 

16134. 

8024-

16519. 

4203. 

3%3he 

212740. 

1792. 

2@82.

11 1006. 

1969 

7462 

2S55e 

8093. 

42158 

3926. 

2984. 

1971 

19682. 

2556e 

8971 

4693. 

4359e 

3351 

10173. 

7542. 

24163-

8732. 

5021. 

1044. 

7010. 

26084e 

14099e 

22350e 

15750. 

7772e 

15600. 

4380. 

3447. 2170178 

1967 

15R02. 

2642. 

7042. 

5449. 

3286. 

2489e 

8607. 

I966 

14955. 

2576. 

6hSS. 

33lOr 

3754. 

9573. 

6750. 

21737-

7627. 

4579 

1054. 

6424 

24562. 

1269he 

5758. 19067. 

6670. 

36Cle 

907. 

5993. 

22142. 

10863-

17513. 

13510-

hR65e 

146120 

5384. 

2648. 

176992. 

16356. 

3577. 

2757. 

59138 

73478 
TABLE E.2 COEN ESTlMATES OF GROSS RATES OF RETURN USED ON HISTORICAL-COST DEPRECIATION, 1947-71 

1947 1948 1949 1952 1953 1954 1955 1956 i9si 1958 

n.a. n.8~. n.a. e2219 n227f e2113 -2616 e2015 e1990 -2324 n.a. n.a. n.n. -1775 ,82232 -2029 e 1988 -2086 92461 -2502 n.s. n.8. n.a. e1556 ,1161 e 0699 e1316 e1308 el068 e 1086 n.a. n.a. n.a. 03062 “2724 -3421 -25.79 -2601 ,1915 e2473 n.a. n.a. n.a. .An86 .,3516 e3418 -4499 e3fiS6 r99i4 e2697 n.a. n.o. n.0. e2909 >.2i6R e2204 -2772 -2726 e2311 e1713 n.a. n.a. n.a. -3914 ,,3448 -3230 -3609 e3924 -2724 e2259 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. @38ta -2932 n.a. n.a. n.a. e7951 ,,2695 e2714 363 1 -3224 e3111 e2828 n.a. n.8. n.a. - F396 ,,02Q4 ’e03R7 -ma0251 *me1622 -e1943 n.a. n.a. n.n. e4311 t 3613 e291S a3662 02833 -2709 n.a. n.a. .n.a. -2846 t,ZS17 e2012 a2599 r2014 ,1603 n.8. n.a. n.a. e3003 1.3449 -3615 -4693 -3607 ,2747 .2549 n.a. n.n. n.a. e2043 c 2652 -1770 .?7R5 -2590 e2425 e 1339 a.a. n.n. n.a. .#?A12 4 0466 -2245 -2330 -2063 e1952 e1680 n.a. n.a. n.8. ,3637 t 1843 e2601 -2388 r2797 e2425 el849 

ilea. n.a, n.8. e3717 u3080 01653 -2232 e2293 e2712 a2384 

n.8. n.a. n.8. 02254 , 7401 e3127 ,2195 1523 02448 -7133 n.a. n.a. n.a. -4800 u 4336 -3050 -6216 ,2740 -2887 00780 n.a. n.a. n.8. -2654 I2605 -3002 e3175 -32~8 e2440 e2771 n.a. n.a. n.a. e20R6 Y 1452 a 1590 1858 e1025 -1882 ,2046 n.ii. e2996 e2672 e2726 ,2609 -2253 e2854 ,2470 ,2240 ,1777 

YFAR 196t 1961 1962 1963 1965 1966 1967 1968 1969 1976 1971 

STC 

70 -2339 -2321 e2257 e2399 e1339 ,2669 -2461 e2351 r2222 ~2539 e2216 

22 14R7 blC.35 1359 .I281 s 7 R93 4 1987 1565 e1727 -1443 e1219 

23 .tP87 -7855 e2678 -3Cl5 e 34R3 e3149 .2:49 e2194 e2410 

?6 

?5 

2587 

r2Ch7 

-3011 

mP17R 

338 1 

,2054 

e6438 

-2592 

,3863 

a a571 

e6321 

1976 

-4558 

e2268 

-3100 

e 1395 

e5154 

e1159 

36 

97 

-23CO 

-3r53 

-2388 

e3468 

-2010 

-3256 

-2323 

e 443 1 

,2513 

s 451R 

e2026 

.A000 

e1993 

-3800 

e1365 

.%A94 

a1105 

e2955 

78 

t9 

3c 

. .3)R4 -.I494 

.25R6 

-3312 

‘le1544 

e7676 

e3330 

1.0994 

.P377 

-3R15 

-0322 

-2216 

4 3461 

s 09s)

,2441 

e3134 

e1092 

.?3!9 

e2553 

-e0123 

-2209 

e21C4 

‘0e 0.4 T9 

rG@75 

-2250 

-e0925 

-1155 

71 

32 

-33 

34 

-1353 

e2297 

.(1993

,1059 

-2652 

e2361 

e1231 

eill 16 

.3394 

e2566 

el427 

e2063 

-2616 

e2653 

-2119 

e7791 

q381R 

,2139 

e2218 

030h7 

m3239

.i92A 

e1306 

e2596 

,2509 

-2412 

-1121 

e2136 

-2f~d6 

e1794 

.oqs

-1385 

el795 

e19S3 

e0697 

e1349 

35 -2359 -7888 -2765 -3722 ,3733 e2951 e2420 ,216~~ e1775 

36 

r37 

371 

e?] 63 

-1546 

.3474 

rP173 

e3560 

-5874 

-7098 

e7407 

a6656 

-795s 

*?726 

e7752 

a3c103 

,2592

,5079 

-2598 

.?54! 

.3R48 

e2456 

-01R2 

-9093 

-1748 

-0393 

,13a5 

e1729 

-0740 

,3499 

?R -3180 -3737 -4356 -5078 ,5832 e5563 e522G *32E7 -3317 

39 e71 92 .a281 -2037 e 1637 e1855 e1798 -2461 1899 ,1819 

21 m23RI) ,2363 -7491 -2795 -2282 t7440 -2978 -3530 e4260 e44Qb 

0 e2022 mP376 .24a4 -3066 ,3031 -25~3 e2213 e1682 ,1758 
194 8 

n.:~. 

1: .i:. :I ,:i . 1i.a. 

II.0. 

n.;i. 

n.n. 

1954 

9n37 b 1R 3 5 I 

/873, 

iao9, 

2237. 

1393. 

3EiS. n.n. 11.2. ~.,n. 

1: .P . fl ,:i . 5.3. 

n..?. 

n.3. 

n.n. 

n.2, 

n.a. 

n.n. 

p..J. 

n.a. 

I1 l! .. 63098. 

!CO31. 

S2SE 

12hG. 

064. 

2891 0 

17567. 

53100 

7998 

1497 

5380. 

6554. 

1279. 

2357 e 

93371 

1963 

13505, 

2658, 

5719. 

2647. 

2909, 

2092* 

6397. 

4530. 

13794. 

6372, 

24450 

761 4 

517G. 

17520. 

H15i, 

1:258, 

s543. 

50C6. 

7P39 * 

2176. 

19770 

131758 

1967 

16413. 

2662. 

7500. 

f5129 

3485 , 2892. 

9196. 

6I9!0 

20253 e 

7455. 

3783 * 

927. 

6377. 

23R65, 

llh70. 

17994. 

13999 

7267, 

1503s . 3436'. 

2bY2t 

186814, 

1968 

'17755. 

259G. 

ai31 s 

4C08, 

371hr 

312R. 

9546.. 

6621 t 

21569. 

8057. 

4?42, 

1016. 

6567. 

252229 

12hS2. 

19240. 

14872r 

7924e 

16E61e 

37 04 

2200. 

20031: I 
TABLE E.4 COBN ESTIMATES Q Cr(0SS RATES 07 lETURN BASED ON CURRENT-COST DERECIATION, 1947-71 

YfAR 1047 196A 1949 1950 1‘351 1952 195’5 1956 1957

SIC?n n.a. 11.8. n.a. ,1710 e1114 01716 1246 e 1256 71 R.8. n.n. n.a. e 1583 1698 e1716 e 1969 e2333 ?? 11.0. n.n. 1-l.n. 

23 11. il. I1.:I e n .I1 . .lhl? a7124 eI;(QI e0705 -0478 

24 

75 

26 

27 

28 

29 

30 

31 

32 

33 

34 

35 

36 

R 37 

371 

n.a. 

n.n. 

n.a. 

n.o. 

n.a. 

n.s. 

n.a. 

n.o. 

n.a. 

n.a. 

n.a. 

n.a. 

n.8. 

n.8. 

n.o. 

n.a. 

n.a. 

n.8. 

n.a. 

n.n. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.8. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n;n. 

n.8. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.a. 

n.8. 

n.a. 

n.8. 

n.a. 

n.a. 

,4476 

a2213 

e3562 

n.n. 

.2an 

0.1447 

el096 

,0660

-3454 

,0741 

,3332 

,2885 

.3662 

n.a. 

.A575 

St675 

.?363 

e431 1 

n.8,. 

.?747 

0.1515 

-4614 

.r(r74

,76RR 

.1 no3 

.‘l73 

e 1456 

e -7877 

-.P652 

,4Q?R 

ea943 

-2220 

e3031 

n.a. 

e7246 

-e1415 

a 3655 

e2521 

e7169 

e0816 

,7215 

e3252 

,3205 

e1317 

-4091 

e1632 

,2771 

n.a. 

,2646 - e0230 

,3060 

,2214 

,2734

,1840 

e2032 

.7549 

.2728 

.1759 

-3890 

11703 

e2703 

n.o. 

e2170 

be0436 

e1711 

e2660 

,3085

,1433 

e 1945 

,23an 

.2432 

.7642 

.ZA17 

e2083 

e2937 

I1.B . .tma 

p.0736

-2407 

e 1727 

,3961

,PO@? 

,1957 

e2109 

1957 

,1684 

.5781 

e2417 

,1954

,2841 

11.n. 

e2091 

me1667 

-2607 

,2144 

.25hl 

,0915 

1498 

e2251 

01743 

.0530 

e2142 

e1741 

e1612 

elR64 

e2264 

e2OOG 

$-e2433 

e 1964 

e2064 

,1895 

,1147 

,1453 

1959 

e2212 

.15:3 

.2367 

3R n.a. n.a. n.a. 1547 ,7m e2267 *P263 e2716 e2814 e26A6 t 1954 

39 n.a. n.a. n.a. e3569 .3560 e 1873 .I317 1288 1609 e 1496 .1523 

0 n.a. e2238 e2197 e2246 e?l 13 -2010 e2082 e1927 e2329 e1527 e1436 

1799 .76R1 .2wa .2209 e1577 

YEAR 196r 1901 1963 1966 1967 1968 1969 1976 

<IC 

7n .;?l*Z e2CB7 e21P5 e2347 e2040 1996 ,1617 ,1850 

71 e7345 *233(! e2753 e2366 -2699 e20R7 e3350 e4043 

72 el(rRI) eC732 e0926 a1516 .OR65 e1277 e 1234 e3942 

?3 974r9 e2776 e7567 e3320 e2958 e2964 -2217 ,1831 

24 -2817 e2244 ,3271 e2413 e3521 e3086 el654 

?S 1SUR -1630 a2065 -1831 1561 e1734 e0946 

?h e2073 ,1973 ,2006 ,1493 e1670 e1290 e0633 

77 m7746 .24 85 ,3809 e3121 ,3456 e2925 e2028 

28 ,2729 e2727 ,2978 e7372 .?6!4 .1817 r13R3 

3n 

31 

.?E373 

e7656 

.2?un 

elt39 

,ZGGlc 

,3671 

e 1696 

e3951 

.1912 

e3541 

e 1549 

et194 

.3i07 

e2216 

32 

33 

34 

e7206 

e1171 

~137’0 

.2C@3 

.Ff7(1 

e16ZF 

e 1732 

D 1560. 

t?7:6 

e1136 

e1011 

-2475 

e13A1 

0646 

-2197 

13n4 

SO066 

e I627 

e07%5 

0 26 0 

e0874 

35 .707A .2153 ,347s e2904 e 2672 e2035 ,1674 

36 

877 

*?nCO 

e1nr7 

.2ClA 

1747 

,2767 

,2114 

2363 

e1926 

-2272 e2028 

-SO773 o :2?7 .- 064 0 

29 -e1117 -*e 1629 ,a227 nsas .0122 -.2000 -a2227 

371 ,36411 .3163 w47RO -2Bi6 e26t9 aOOF6 

33 m3171 .z993 ,5516 e 4597 e4682 02731 

39 e1572 .2r22 I 1579 *141a o 1444 e1930 e1338 

0 I872 e1728 ,2598 ,2075 e2123 e 1484 ,0924 

I 958 

e1901 

e2441 

e0670 

,2308 

,2501 

*!236 

e2130 

,2139 

0.1767 

,229A 

,1419 

,2650 

0%3 

,1411 

,1607 

02126 

,1745 

,0654 

,2485 

,1827

e1419 

197 1 

.;1447 

,4182 

,0597 

195a 

e!533 

,0736 

,0279 

,1970

e1340 

-*2Q63 

,0398 

e1396 

* C663 

-et423 

e0301 

e13C3 

,1175 

1758 
FOOTNOTES 

&’The revealed service lives and depreciation patterns employed 

here are given in the appendix. They correspond to those reported in 

[31 

L’A little algebraic manipulati-n reveals that nominal income in 

this case is rC1 in year 1, rC2 in year 2, rC3 in year 3. 

/Detailed estimates of replacement requirements by industry are 

not presented in this paper, 

&/The standard deviation of the rates of return is 7.5 percent in 

1953, or 29 percent of the mean, versus 10.2 percent in 1971, or 58 percent 

of the mean. These values exclude petroleum. 

?/For the case of current-cost accounting, the standard deviation 

of the rates of return is 7.0 percent in 1953, or 34 percent of the mean, 

versus 11.4 percent in 1971, or 128 percent of the mean. 
REFERENCES 

1. R. M. Coen, "Extension and Analysis of the Faucett Investment Data 

for Manufacturing Industries," prepared for the Office of 

Tax Analysis, U.S. Treasury Department, January 1974. 

2. R. M. Coen, "Investment Behavior, The Measurement of Depreciation, 

and Tax Policy," American Economic Review, March 1975, pp. 59-74. 

3. R. M. Coen, "Revised Estimates of Service Lives and Capacity 

Depreciation Patterns of Manufacturing Equipment and Structures," 

prepared for the Office of Tax Analysis, U.S. Treasury Department, 

June 1974. 

4. J. A. Gorman, "Nonfinancial Corporations: New Measures of Output 

and Input," Survey of Current Business, March 1972, Table 5, 

pp. 26-27.