investment – is equal to the marginal cost, which is the additional cost of investing due to the higher quality of capital. The …Does it always pay to install high-quality capital? Or could it possibly be more profitable to make investments that do … not last too long? In this Paper we ponder the optimal rate of depreciation of physical capital, first in the Solow model …

1992: high output growth, sustained returns on capital investments, extensive reallocation within the manufacturing sector …-productivity sector, and attracts an increasing employment share. During the transition, low wage growth sustains the return to capital …

This paper examines shares of fixed capital formation in GDP and rates of economic growth for more than 100 countries …, provide more evidence that increases in growth precede rises in rates of capital formation than that increases in capital … formation precede increases in growth. High rates of fixed capital formation accompany rapid growth in per capita income, but we …

and investment. When the share of output that accrues to the owners of natural resources rises, the demand for capital … allocation of capital may, however, enhance the quantity as well as the quality of new investment and sustain growth. Empirical … evidence from 85 countries from 1965-98 suggests that abundant natural capital may on average crowd out physical capital …

that future research will need to look much more carefully at proxies for human capital formation and at determinants of ex …-ante returns on investment. …

that is able to bail out the bank either by injecting capital at a fixed return or by receiving an equity claim. This … authority faces a trade-off: demanding a fixed premium increases investment but worsens moral hazard. Request for an equity … claim by the fiscal authority reduces excessive risk taking at the expense of investment. This resembles the current …

induces moral hazard. Therefore, we introduce a fiscal authority that is able to bail out the bank by injecting capital. This … authority faces a trade-off: when it imposes strict bailout conditions, investment increases but moral hazard ensues. Milder … bailout conditions reduce excessive risk taking at the expense of investment. This resembles the current situation on …

regulators try to resolve these problems. We find that liberalizing bank capital flows between economies reduces total welfare by … field' forcing international harmonization of capital requirements and deposit rates across economies. Such a policy is good … for weaker regulators whereas a laissez-faire policy under which each country chooses its own capital requirement is …