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Stable economic depreciation
Journal article   Peer reviewed

Stable economic depreciation

Philip C. Jones, James L. Zydiak and Wallace J. Hopp
Operations research letters, Vol.9(5), pp.325-333
09/01/1990
DOI: 10.1016/0167-6377(90)90027-3

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Abstract

This paper presents an equipment replacement model for a profit maximizing firm facing a downward sloping demand curve and establishes two main results. First, decisions on production levels and equipment replacement are independent. Second, there exists a depreciation schedule that is stable in the sense that neither firm nor government can argue for changes on purely economic grounds.
depreciation fixed point

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