The Estimation On Depreciation Rate Of R&D Capital And The Analysis Of Factors Elasticity In China's High Tech Industries

2008SNA puts research and development into the accounting of assets,but putting this idea into practice has much difficulty.One difficulty is the selection of the depreciation rate of R&D capital.Determining the depreciation rate of R&D capital is of great significance to properly account R&D capital stock and calculate the output effectiveness.The depreciation rate of R&D capital of five high-tech industry in China is measured through a production function method using the monopoly profit maximization principle.The depreciation rates of R&D capital of Manufacture of Medicines,Manufacture of Aircrafts and Spacecrafts,Manufacture of Electronic Equipment and Communication Equipment,Manufacture of Computers and Office Equipments and Manufacture of Medical Equipments and Measuring Instrument are 20%,31.5%,25.25%,41.5%and 31.3%.Then R&D capital stock of five industries can be estimated on the basis of it.Finally,using Ridge regression method of one-level CES production function and two-level CES production function can discuss the output elasticity of input elements and the substitution elasticity of elements.The results show that the two-level CES production function is more suitable for the development of the five industries:1.Output elasticity.(1)For the Manufacture of Medicines,the output elasticity of tangible fixed assets is on the upward trend,the output elasticity of R&D capital remains at about 0.25,and the output elasticity of labor decreases year by year.(2)For Manufacture of Aircrafts and Spacecrafts,the output elasticity of tangible fixed assets generally shows a ascending trend,the output elasticity of R&D capital is over 0.5,and the output elasticity of labor remains at around 0.1.(3)For Manufacture of Electronic Equipment and Communication Equipment,the output elasticity of tangible fixed assets from 1995 to 2001 shows a rising trend,and then tends to be stable.The output elasticity of R&D capital shows a downward trend from 1995 to 2001,and then tended to be stable.The output elasticity of labor is remains at about 0.4.(4)For Manufacture of Computers and Office Equipments,the output elasticity of tangible fixed assets remains at about 0.2,the output elasticity of R&D capital is stable at around 0.35,and the output elasticity of labor is maintained at about 0.54.(5)For Manufacture of Medical Equipments and Measuring Instrument,the output elasticity of the fixed assets is on the slow upward trend,the output elasticity of labor input is on the slow downward trend,while the output elasticity of R&D capital is estimated to be negative.2.Substitution elasticity.The substitution elasticity of tangible fixed capital and R&D capital in China's high technology industries is less than 1,indicating that there are certain restriction in the replacement between tangible fixed capital and R&D capital in high technology industry.The substitution elasticity of fixed capital and labor inputs are greater than 1,indicating that the restriction of replacement between fixed capital and labor inputs of alternative is relatively lower.