Investment Rate vs Relative Price of Investment
(2004)
Files
2004-10.pdf
Open Access - Adobe PDF
- 160.97 KB
Details
- Authors
- Abstract
- In this paper I accomplish a levels account exercise across countries in order to calculate contributions from differences in the relative price of investment and the investment rate to differences in the physical capital-output ratio -and consequently in output per worker- across countries. I find that differences in the relative price of investment account for most differences in the physical capital-output ratio across countries and, consequently, if capital share on income is broadly consistent with national income accounts data, they have a moderate importance in accounting for differences in output per worker. However, differences in the investment rate account for very little disparity in physical capital-output ratio and output per worker across countries.
- Affiliations
Citations
del Rio, F. (2004). Investment Rate vs Relative Price of Investment (ECON Discussion Papers 2004/21). https://hdl.handle.net/2078.5/35996