Definition: Age-efficiency profile

Category: OECD terminology

"Measuring Capital" Manual 2009

Describes an asset’s productive capacity over its service life. The index is set to equal one for a new asset and becomes zero when the asset has reached the end of its service life. The decline in productive capacity is a result of wear and tear of the asset.

"Measuring Capital" Manual 2001

The age-efficiency profile of an asset describes the change (usually the decline) in the efficiency of an asset as it ages. Efficiency in this context refers to the asset's ability to produce a quantity of capital services for a given amount of inputs.

"Measuring Productivity" Manual

Age-efficiency profile shows the loss in productive capacity of a capital good over its life time, or the rate at which the physical contribution of a particular asset declines over time, as an effect of wear and tear. http://ec.europa.eu/eurostat/ramon/statmanuals/files/oecd_measuring_capital_2001_en.pdf Measuring Productivity Manual (OECD 2001)Measuring Capital Manual, Second Edition (OECD 2009)