# Is there any investment model with time-varying depreciation rate?

Is there investment model with different depreciation rate.

For example, d1(depreciation rate in 1 period), d2(depreciation rate in 2 period)

Thus the adjustment path for the capital utilization rate is a flexible accelerator. This result rigorously establishes the empirical finding obtained by Nadiri and Rosen (1969) that the adjustment' path of the capital utilization rate is similar to the paths of capital and labor growth rates which are governed by flexible accelerators. Along the dynamic path, as the capital intensity decreases the net utilization rate declines for two reasons. First, there is the direct effect of the capital intensity on the net utilization rate. A decrease in the capital intensity leads the firm to reallocate resources towards capital output which decreases the rate. Second, there is the indirect effect, which arises because the decrease in capital intensity causes the price of unutilized capital to increase. Since the marginal value of unutilized capital increases, the firm then utilizes less of its capital and so the utilization rate falls. Thus $k^° > k^*$ implies that $\delta^° > \delta^*$. These results mean that along the dynamic path the net capital utilization rate and the rate of capital investment are inversely related while the net capital utilization rate and the labor investment rate are directly correlated.