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PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 28

Depreciation in the Production Process and Financial Amortization


The quantity A=R, represents the depreciation in the production
 process. In a similar way it is possible to define a
financial amortization. In the present theory any primary
outlay is incorporated in capital. Thus we can consider the
consumed national income as the sum of financial amortization
Ar and of capital interest 1C and write

(116-18)

R.=Ar+iC

Then from (110-1) and (110-2) we have

(116-10)

R,.-/C=R__4C
dt

and then

(116-20)

A=R, dC
wT

and taking account of (116-12)

116-21)

A-A__ dC R
d 4 -[R,-R,]

(+

A
(!) The value of R,—R,, is given below for a special case (relation 251-20).

II] Allais - pag. 40