Incremental capital-output ratio
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The Incremental Capital-Output Ratio (ICOR), is the ratio of investment to growth which equals to 1 divided by the marginal product of capital. The higher the ICOR, the lower the productivity of capital. The ICOR can be thought of as a measure of the inefficiency with which capital is used. In most countries the ICOR is in the neighborhood of 3. It is a topic discussed in Economic growth.
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