Predicting Farm Tractor Values through Alternative Depreciation Methods

This study compares a variety of farm tractor depreciation methods to determine which most accurately estimates farm tractor values. These alternative depreciation methods consider different factors for estimating remaining value and vary in difficulty of use. Pairwise comparisons of mean absolute percentage error and forecast accuracy regression models were used to evaluate the accuracy of the depreciation methods, which depend on age, intensity of use, and manufacturer. Based on the results of this study, the Cross and Perry method was generally the most accurate. Copyright 2003, Oxford University Press.