Commercial Buildings Capital Consumption and the United States National Accounts
Name
SSRN-id2796382.pdf
Description
Submitted version
Size
454.83 KB
Format
Adobe PDF
Checksum (MD5)
aad039e023678bc0eb64b63f6a9fc696
Author(s)
Bokhari, Sheharyar
Geltner, David M
Date Issued
April 2018
Journal
Review of Income and Wealth
Publisher
Wiley
Citation
Bokhari, Sheharyar and David Geltner. “Commercial Buildings Capital Consumption and the United States National Accounts.” Review of Income and Wealth, 65, 3 (April 2018): 561-591 © 2018 The Author(s)
Version
Original manuscript
Abstract
Commercial buildings are a major asset class, over 30 percent of the value of the stock of all produced assets according to the BEA. Yet, US commercial buildings depreciation has not been comprehensively studied since the highly influential work of Hulten and Wykoff almost 40 years ago. This paper's major contributions include: (i) More flexible and precise estimation of the net depreciation value/age profile, allowing much finer characterization of the building life cycle; (ii) Explicit quantification of the land value component of commercial property value, enabling net depreciation to be quantified as a fraction of remaining structure value; (iii) Inclusion of capital improvement expenditures, allowing estimates of “gross depreciation” (total capital consumption); and (iv) Implications of the paper's findings to and for the national accounts.
MIT Department
Massachusetts Institute of Technology. Center for Real Estate
Massachusetts Institute of Technology. Department of Urban Studies and Planning
Terms of Use
Creative Commons Attribution-Noncommercial-Share Alike
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DOI of Published Version
https://doi.org/10.1111/ROIW.12357
