Term:
Lemons
Definition:

Lemons is used in the literature on capital measurement to mean defective capital goods. It is sometimes alleged that prices of second hand assets are biased downwards because buyers assume that the sellers are disposing of their defective assets or “lemons".

Domain:
Economics & National Accounts
Source:
Measuring Capital: OECD Manual, Annex 1 Glossary of Technical Terms Used in the Manual, OECD, 2001
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