| Home > American Agricultural Economics Association (AAEA) > 1978 Annual Meeting, August 6-9, Blacksburg, Virginia > A METHODOLOGY FOR DURABLE ASSET REPLACEMENT DECISIONMAKING |
Durable asset replacement theory typically assumes (1) a constant conversion rate between the stock of the asset and its flow of services and (2) perfectly substitutable services from either asset. A methodology is presented which relaxes both assumptions. The variable usage rate for the asset becomes an important determinant of replacement.
