Denison's [1957, 235] definition of capital consumption is similar: "Capital consumption .
The concept of capital consumption was originally devised for the purpose of measuring income, and not for analyzing production.
CAPITAL USED UP, CAPITAL CONSUMPTION, AND ECONOMIC DEPRECIATION
As noted in section II, the valuation of capital used up in production defines capital consumption in economic accounts.
First, it shows the equivalence of the economic accounts concept of capital consumption and of economic depreciation.
In the first half of 1991, capital consumption allowances and foreign earnings provided most of the internal sources of funds; undistributed profits were minimal.
The major source of funding therefore will be capital consumption allowances, which are now running about 95 percent of P&E.