Also driving China s high investment rate is the declining efficiency of investment capital, reflected in China s high incremental capital output ratio (annual investment divided by annual output growth).

They calculated that 75 to 80 of economic growth did not come from increasing the capital output ratio at least not if the private marginal product of capital was taken as an indicator of the social marginal product.

That said, the ratio of capital formation does require careful monitoring.

Energy conversion efficiency (η) is the ratio between the useful output of an energy conversion machine and the input, in energy terms.

With an investment rate of 50 and a GDP growth rate of 8 , the incremental capital output ratio could be higher than six, compared to 4.1 in 1991 2003, implying not only low efficiency, but also the possibility of a significant increase in nonperforming loans.

That way, the debt GDP ratio declines because the denominator (economic output) increases, not because the numerator (the total the government has borrowed) declines.

Rapid output growth without equally rapid capital stock or employment growth must have reflected rapid productivity growth.

This is reflected in the current investment ratio for real capital assets of 43 of GDP, compared to 4.3 investment in human capital in the form of education.

First, prolonged unemployment destroys not just current but also potential output by eroding the human capital of the unemployed.

Rather than recognizing the beauty of laws otherwise discovered, we use principles of beauty vast symmetry and a high ratio of output to input to enable discovery.

Because of the capital utilization effect, the capital labor ratio would not, in fact, decline, and hence there would be no significant effect on the marginal productivity of hours worked.

In fact, as China undergoes a process of capital deepening (increasing capital per worker), even more investment is needed to contribute to higher output and technological advancement in various sectors.

For starters, it is likely that the contribution to output growth of the rising ratio of working age people prior to 2010 was overestimated. That makes the subsequent decline in the ratio an inaccurate measure with which to determine the negative impact on economic performance.

With a lower capital stock, output would trend downward, reducing government revenues and substantially offsetting the direct gain from the tax.

Instead, the keys to growth and development appeared to lie beyond an increase in capital intensity as measured by capital output ratios skills, education, technology broadly understood, and improvements in organizational management.

Some fear that extending the workday will not produce more jobs because the resulting expansion of hours worked will reduce the capital labor ratio.

Regarding the banking sector, stress tests have been applied since 2004, and a target capital adequacy ratio of 12 has been maintained since 2006.

This will raise actual output to the level of potential output, thereby closing the output gap.

First, capital requirements should be set as a straightforward ratio of common equity to total assets, thereby abandoning all reference to banks own risk management models.

Today, capital in the developed world is abundant the saving ratio declines as people consume more and production shifts increasingly to services, where productivity gains are limited.

Output

Output

Overall pressure ratio is 28.0, with a bypass ratio of 4.66.

Overall pressure ratio is 30.4, with a bypass ratio of 5.15.

(c) As the balance of payments deteriorated, especially after interruptions of capital inflows and sometimes massive flights of capital, the national currency was sharply devalued. This sharp devaluation increased further the cost of debt servicing and the debt to GDP ratio.

Aspect ratio

Aspect ratio

Keep ratio

Aspect ratio

Golden Ratio

Custom ratio

The ratio of the two is called the gyromagnetic ratio and is simply the half of the charge to mass ratio.

The ratio of market value to book value, termed Tobin s Q by financial economists, is a standard measure for evaluating how effectively firms use the capital they have.

Output intensity.

Output device

So a country where labor productivity is low will become an attractive location for foreign direct investment, and the resulting increase in the capital labor ratio will raise productivity.

Preserve Aspect Ratio

Aspect Ratio Crop...

Aspect Ratio Crop

Maternal mortality ratio

Government debt Under European Union rules, member states are supposed to limit their debt to 60 of output or be reducing the ratio structurally towards this ceiling, and run public deficits of no more than 3 of GDP.

Faced with the difficulty of meeting their 9 capital ratio requirement, they will achieve the target by selling assets and contracting credit not exactly an ideal scenario for economic recovery.

Believers in low interest rates also emphasize shifts in income distribution in the United States away from labor and toward capital, which have greatly boosted firms' resources to finance investment internally and reduced their dependence on capital markets. They point to rapid technological progress, which has boosted output from new and old capital investments.

Minimal output intensity.

Maximal output intensity.