chapter
16 Pages

Introduction G. C. Harcourt, "The Accountant in a Golden Age," Oxford

R* with respect to n for the various cases examined. The following diagrams illustrate, schematically, the patterns of variation with respect to n.

(I) Straight-line depreciation, balanced stock, physical capital Case (I):

(The arrows show the influence of growth and financial capital on R*.) Case (2): .l

o n years

(Dotted arrows show the influence of changes in a-the greater is the value of a, the faster is the approach to 00. The function is not defined at l+r = a.) Case (4): This case cannot be shown in a general diagram because it depends on the ratio, min. Its value approaches that of (2) as m « n) --+ O. (II) Reducing-balance depreciation, balanced stock, physical capital Case (1):

£

80 THE ACCOUNTANT IN A GOLDEN AGE Cases (2) and (3) are similar to those for straight-line depreciation but, for n > 2, Rh < R*.