capital accumulation

(redirected from Capital concentration)

capital accumulation

see CAPITAL FORMATION.

capital accumulation

or

capital formation

  1. 1the process of adding to the net physical CAPITAL STOCK of an economy in an attempt to achieve greater total output. The accumulation of CAPITAL GOODS represents foregone CONSUMPTION, which necessitates a reward to capital in the form of INTEREST, greater PROFITS or social benefit derived. The rate of accumulation of an economy's physical stock of capital is an important determinant of the rate of growth of an economy and is represented in various PRODUCTION FUNCTIONS and ECONOMIC GROWTH models. A branch of economics, called DEVELOPMENT ECONOMICS, devotes much of its analysis to determining appropriate rates of capital accumulation, type of capital required and types of investment project to maximize ‘development’ in underdeveloped countries (see DEVELOPING COUNTRY). In developed countries, the INTEREST RATE influences SAVINGS and INVESTMENT (capital accumulation) decisions, to a greater or lesser degree, in the private sector (see KEYNESIAN ECONOMICS) and can therefore be indirectly influenced by government. Government itself invests in the economy's INFRASTRUCTURE. This direct control over capital accumulation, and the indirect control over private investment, puts the onus of achieving the economy's optimal growth path on to the government. The nature of capital accumulation (whether CAPITAL WIDENING or CAPITAL DEEPENING) is also of considerable importance. See also CAPITAL CONSUMPTION, INVENTION, INNOVATION, CAPITAL-OUTPUT RATIO.
  2. the process of increasing the internally available CAPITAL of a particular firm by retaining earnings to add to RESERVES.
References in periodicals archive ?
Good article but it doesn't mention that in addition to assortative mating, capital concentration, etc., this elite has done a fine job of good old-fashioned rigging the system in its own favor (e.g., public bailouts for banks, endless DoD bucks for Silicon Valley).
WASHINGTON: Eighty-two percent of banks plan to increase capital concentration in commercial real estate, according to the American Bankers Association's first annual Commercial Real Estate Lending Survey.
In the past, MDBs have managed their capital concentration risks mainly through reducing or limiting exposure in countries where lending volumes were especially high.
This paper, to the authors' best knowledge, is the first to investigate the specificities and uniqueness of the combination's effect of external audit quality (particularly auditor reputation and auditor-audited relationship seniority) and ownership structure (specifically capital concentration and institutional property) on earnings reported by listed and unlisted Tunisian firms.
But there are counter-tendencies to capital concentration and centralization, which would be worth discussing.
Effect of Component Changes on the Gini Index Component Gini index Labor share, 1 percent decrease 0.15-0.33 percent increase Labor concentration, 1 percent increase 0.6-0.7 percent increase Capital concentration, 1 percent increase 0.3-0.4 percent increase Sources: Congressional Budget Office; authors' calculations.
Inflows strong across all firm capitalizations as risk tolerance returns Investors allocated new capital to funds of all asset tiers, reflecting a moderation of the capital concentration in the industry's largest firms.
Most banks and bank holding companies with BOLI are well within their 25% capital concentration guidelines.
The merger is one of the capital concentration forms.
But, an intense process of banking capital concentration is currently under way.
Unions, especially those in the Congress of Industrial Organizations, believed that government action was necessary to deal with capital concentration and managerial control of pricing and profits and to seek full employment.
NAFTA would very rapidly contribute to a great increase in the degree of capital concentration in Mexico.

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