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Measuring the Depreciation of Intangibles Using Search Volume Data

Review of Income and Wealth

Published online on

Abstract

["Review of Income and Wealth, Volume 72, Issue 3, August 2026. ", "\nABSTRACT\nThis study introduces a novel methodology to estimate the depreciation of intangible assets using Google Search Volume (GSV) data. In this exercise, we focus on software and entertainment, literary, and artistic originals. We interpret declining search activity as reflecting economic obsolescence, the diminishing ability of assets to generate revenues over time. We estimate depreciation rates from search patterns for over 4600 movies and 1089 software titles. We estimate depreciation rates for software originals to be between 13.1% and 15.7% annually, substantially lower than the 20%–25% rates employed by statistical agencies. Movie depreciation estimates closely align with US and German official figures, providing external validation. Applying our revised software rates to UK capital stock estimation yields net stocks 3%–16% higher for the Information and Communication sector, with the disparity increasing over time.\n"]