Numerous studies on production and cost, the sources of productivity and studies on endogenous growth have recognized the pivotal role of the physical capital stock. Also there is a clear recognition by economists and policy makers that knowledge capital approximated by R&D capital is crucial...

The purpose of this paper is to analyze the determinants of capital durability and utilization and their interdependence with investment decisions. The approach is based on the view that the flow of undepreciated capital is an output to be used in future production. At each date capital and...

Many important economic problems require measures of physical and R&D capital. Except for some recent studies, there have been relatively few contributions in the literature that provide econometric estimates for the depreciation rates of physical and R&D capital. One reason for the relative...