Incremental capital-output ratio
id:
incremental-capital-output-ratio-294-11567080
title:
Incremental capital-output ratio
text:
The Incremental Capital-Output Ratio (ICOR) is the ratio of investment to growth which is equal to the reciprocal of the marginal product of capital. The higher the ICOR, the lower the productivity of capital or the marginal efficiency of capital. The ICOR can be thought of as a measure of the inefficiency with which capital is used. In most countries the ICOR is in the neighborhood of 3. It is a topic discussed in economic growth. It can be expressed in the following formula, where K is capital
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wiki
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encyclopedia
description:
original url:
https://en.wikipedia.org/wiki/Incremental_capital-output_ratio
date created:
date modified:
2023-03-24T21:14:04Z
main entity:
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13
integrity:
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