Term:
Decay
Definition:
Decay is the loss in the physical 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 of labour or materials.
Domain:
Economics & National Accounts
Source:
Measuring Capital: OECD Manual, Annex 1 Glossary of Technical Terms Used in the Manual, OECD, 2001
