Asset replacement principles

Research output: Contribution to journalArticlepeer-review

13 Scopus citations


Using a general model of asset replacement, a replacement principle is derived which applies to both appreciating assets such as forests and depreciating assets such as equipment. The resulting replacement criterion provides a definition of opportunity costs appropriate for the replacement decision. The theory is presented graphically for the continuous time case, and two discrete-time examples are considered. Theoretical implications of changing discount rates and market forces are considered as they affect replacement policies.

Original languageEnglish (US)
Pages (from-to)60-67
Number of pages8
JournalAmerican Journal of Agricultural Economics
Issue number1
StatePublished - Feb 1 1972
Externally publishedYes

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics


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