An experiment with incremental capital-output ratio
abstract (conclusion): 1) it is not evident when one examines table 1, that the overall marginal productivity of capital rises over time. but on the average (see table 2), this tendency may be said to hold true in case of most of the countries. one,in fact , needs to have data ranging over a period...| Link(s) zu Dokument(en): | IHS Publikation |
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| Format: | IHS Series NonPeerReviewed |
| Sprache: | Englisch |
| Veröffentlicht: |
institut fuer hoehere studien
1968
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| Zusammenfassung: | abstract (conclusion): 1) it is not evident when one examines table 1, that the overall marginal productivity of capital rises over time. but on the average (see table 2), this tendency may be said to hold true in case of most of the countries. one,in fact , needs to have data ranging over a period of more than 25 to 30 years to examine such phenomenon. only in such cases the calculated capital-output ratios will reflect the lagged effect on output of heavy investments (such as in infrastructure) that were undertaken decades earlier. 2) inspite of this limitation, one can at least expect on the basis of the available evidence of negative correlations, that if a country experiences increasing rates of growth over time, it will find its marginal productivity of capital rising gradually. as to the theoretical reasonings behind such inverse relationship dr. patel in his note has already given some hints and prof. leibenstein has discussed it elaborately in his article mentioned earlier. our findings lend further support to their empirical verifications.; |
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