>> Sorry if the subject heading seems racier than it turns out to be... >> >> Anyway, what, if anything, does it mean that the U.S. has the lowest >> capital/output ratio in the OECD? Here are some numbers for 1996, from the >> OECD in Figures, 1997 edition: >> >> CAPITAL/OUTPUT RATIO, BUSINESS SECTOR, 1996 >> >> Australia 2.87 >> Austria 3.71 >> Belgium 2.89 >> Canada 2.46 >> Denmark 3.87 >> Finland 3.57 >> France 2.93 >> Germany 2.75 >> Greece 2.48 >> Ireland 2.09 >> Italy 2.82 >> Japan 2.55 >> Netherlands 2.18 >> Norway 3.43 >> Spain 2.60 >> Sweden 2.89 >> Switzerland 3.21 >> UK 2.81 >> US 1.91 >> >> Doug >> >I guess it could mean one of two things: > >(1) Capital intensive firms in the US somehow are really more productive; >(2) Relative to other countries, the US has had more productivity gains >through speed-ups than through mechanization. > >Is this a trick question? > >Curious, >Tavis > > One other possible explanation for low capital output ratio in the United States is that K/Ys are correlated with Marx' concept of the organic composition of capital. When organic composition of capital is low then the rate of profit is high, assuming that the rate of surplus value is the same (or not lower). Since statistically profit rates are higher in the U.S. then OCC must be low. Fikret.
