DEPRECIATION IN VITRUVIUS

Abstract

Vitruvius has something interesting to say at De architectura 2.8.8: Non enim quae sunt e molli caemento subtili facie venustatis, non eae possunt esse in vetustate non ruinosae. itaque cum arbitrio communium parietum sumuntur, non aestimant eos quanti facti fuerint, sed cum ex tabulis inveniunt eorum locationes, pretia praeteritorum annorum singulorum deducunt octogesimas et ita – ex reliqua summa parte reddi pro his parietibus – sententiam pronuntiant eos non posse plus quam annos LXXX durare.Those structures made of soft rubble, for all their subtle attractiveness, are not the ones that will resist ruin as time passes. And thus when assessors are appointed to evaluate party walls, they never assess soft rubble walls according to their initial cost, but rather, when they look at the price recorded in the original contracts, they deduct 1/80th of that sum for each subsequent year, and the remaining amount is fixed as the current value of the walls. They have rendered judgement, in effect, that such walls cannot last more than 80 years.By contrast, mud-brick walls were not depreciated at all if they were standing when assessed (Vitr. 2.8.9). The calculation performed for concrete walls demonstrates clear understanding of what we call ‘depreciation’ or ‘amortization’ in ancient Roman thought. It appears to have been overlooked to date.