Appended Note 2-5 Estimation Method for Capital Cost
- Japanese version
- English version
Besides, the following presumption is needed for the estimate equation for the above capital cost.
- Firms take actions for profit-maximizing and the capital investment for firms is performed in order to adjust a deviation of optimal capital stock and real capital stock.
- The stockholder (investor) faces a tax system similar to the firms. Firms also take action for profit-maximizing, while in particular paying strong attention to the institutional investors (stockholders).
- Capital gains by the capital good' s price change is not considered for firms.