Inflation, depreciation and optimal production

Yoram Landskroner*, Haim Levy

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

Depreciation is an economic outlay, though not a cash outflow. It is recognized as an outlay for tax purposes. This paper deals only with the tax effect of the depreciation method, emphasizing the impact of inflation on both the optimal depreciation method and optimal combination of production factors chosen by firms. In the U.S. and other countries accelerated forms of depreciation were adopted. These methods are analyzed and an optimal one is proposed.

Original languageEnglish
Pages (from-to)353-367
Number of pages15
JournalEuropean Economic Review
Volume12
Issue number4
DOIs
StatePublished - Oct 1979

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