in this period. Banks that were more tolerant of risks (that is, whose capital ratio was higher) made a larger amount of …

capital? The answer, based on a simple model of temporary equilibrium, is that ex post is better in theory. In practice …

We employ the EU KLEMS database to estimate the real rate of return to capital in 14 countries (11 in the EU, three … outside the EU) in 10 branches of the market economy plus the market economy as a whole. Our measure of capital is an …, the rate varies widely across the 10 branches, often being implausibly high or low. We also estimate the growth of capital …

Brownian motion shock. The marginal product of capital is increasing initially and decreasing thereafter. In the latter range … marginal unit is a required multiple of the cost of capital. The multiple reflects the option value of waiting. The optimal … increase in capital. Implications for economic growth, and suboptimal equilibria under external economies, are examined. …

cross-country income variance can be attributed to differences in (physical and human) capital, and how much to differences … in the efficiency with which capital is used?” Hence, it does for the cross-section what growth accounting does in the … time series. The current consensus is that efficiency is at least as important as capital in explaining income differences …