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st: cumulative sum with depreciation


From   Andr� Paul <[email protected]>
To   [email protected]
Subject   st: cumulative sum with depreciation
Date   Sun, 19 Mar 2006 20:02:17 +0100

Dear all,

I would like to build a stock variable with declining balance depreciation:

S_t=0.85*S_t-1 + R_t
(the initial value is always 0)

The data (an unbalanced panel) looks like:

Firm year R
2 1980 0
2 1981 1
2 1982 0
2 1983 7
2 1984 9
2 1985 4
2 1986 3
3 1994 0
3 1995 0
3 1996 0
3 1997 1
3 1998 0
.
.
.

But I couldn't find a way to build the variable "S", can anybody help me?

Thanks in advance,
Andr�

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