what is economic depreciation 
economic depreciation is a measure of the decrease in the market value of an asset over time from influential economic factors this form of depreciation usually pertains to real estate which can lose value for several reasons such as the addition of unfavorable construction in close proximity to a property road closures a decline in the quality of a neighborhood or other negative influences economic depreciation is different than accounting depreciation in accounting depreciation an asset is expensed over a specific amount of time based on a set schedule 