On Mon, Sep 27, 2004 at 08:42:58AM -0500, Dan Minette wrote: > I found an interesting measure: the ratio of GDP capital stock. Since
Where did you find this data? I would like to read about exactly what is being measured and/or calculated. Are they measuring the (undepreciated) dollar value of capital stock? Do they account for quality of capital ($1000 of computer today is much more useful than $1000 of computer in 1980). Also, I would like to see what the number looks like with the GDP dependence removed, but you did not specify whether that was real GDP or nominal GDP. > Indeed, this number dropped fairly steadily during the '90s (since > its inverse increased). I'm not arguing that significant capital > investments were not made in the '90s, but if one considers total > capital, one finds that it decreased relative to GDP. You are saying that GDP increases more than capital stock. Isn't that obviously going to be the case? As I said before, GDP increase is approximately the sum of employment increase and productivity increase. And productivity increase is due to better people and high quality and quantity of capital. So capital stock increase is responsible for only a part of the GDP increase. This doesn't change the fact that there was a massive and SUSTAINED increase in investment from 1994 to 2001. http://erikreuter.net/econ/pro_inv.png I'm not sure what your point is. -- Erik Reuter http://www.erikreuter.net/ _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
