How fast do personal computers depreciate?
Subtitle: Concepts and new estimates
By: Mark E. Doms ... [et al.]
Contributors: Doms, Mark E.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 10521; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 10521.
Publisher: National Bureau of Economic Research
Published: 2004
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Microcomputers.; Depreciation.
Description: "This paper provides new estimates of depreciation rates for personal computers using an extensive database of prices of used PCs.  Our results show that PCs lose roughly half their remaining value, on average, with each additional year of use.  We decompose that decline into age-related depreciation and a revaluation effect, where the latter effect is driven by the steep ongoing drop in the constant-quality prices of newly-introduced PCs.  Our results are directly applicable for measuring the depreciation of PCs in the National Income and Product Accounts (NIPAs) and were incorporated into the December 2003 comprehensive NIPA revision.  Regarding tax policy, our estimates suggest that the current tax depreciation schedule for PCs closely tracks the actual loss of value in a zero-inflation environment.  However, because the tax code is not indexed for inflation, the tax allowances would be too small in present value for inflation rates above the very low level now prevailing"--National Bureau of Economic Research web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 1/12/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.