Marginal efficiency of capital

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Marginal efficiency of capital

The percentage yield earned on an additional unit of capital.

Marginal Efficiency of Capital

The extra yield that an investor earns for each additional dollar of capital invested in the venture or security. The marginal efficiency of capital helps measure how much investment capital is worth the risk at a given return. It is also called marginal productivity of capital.
References in periodicals archive ?
Positive output elasticity with respect to capital for textile and organized manufacturing sector (during pre-reform period) implies marginal productivity of capital is positive for this industry.
The estimated marginal productivity of capital has decreased at the aggregate level and the sub-sector level from pre-reform period when compared with the post-reform period.
where, [alpha] is the marginal productivity of capital in non-export sector, which is assumed as constant, and (([delta]/1+[delta])+ [F.
A high rate of 7%, approximating the marginal productivity of capital, has been adopted by the Office of Management and Budget, while a low rate of 2-3%, approximating the federal borrowing rate, has been adopted by the General Accounting Office, the Congressional Budget Office, and the U.
When a piece of capital leaves the United States (say, because its marginal productivity elsewhere has increased), the supply of labor in the United States relative to capital rises--raising the marginal productivity of capital in the United States and, thus, encouraging new investment here.
His function, with its initially rising marginal productivity of capital, differs from Cobb-Douglas.
t - 1]) Diminishing marginal productivity of capital in equation (5) suggests a negative correlation between [h.

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