Large and sustained differences in marginal products of capital (MPKs) across countries are sharply at odds with the … substantially affected by adjustment costs in the accumulation of capital. With the proper technology and a plausible … parameterization of adjustment costs, the MPK in poor countries is much higher than the MPK in rich countries. Why capital flows do not …

The CLASS model is a top-down capital stress testing framework that projects the effect of different macroeconomic … industry capital gap relative to a target ratio at different points in time under a common stressful macroeconomic scenario …. This estimated capital gap began rising four years before the financial crisis and peaked at the end of 2008. The gap has …