rate of return on capital

Diane Monaco dmonaco at pop3.utoledo.edu
Tue Apr 16 11:20:31 PDT 2002


At 01:47 PM 4/16/2002 -0400, you wrote:
>One version of that can be estimated by looking at BEA's direct investment
>data for the U.S. <http://www.bea.gov/bea/di/di1usdop.htm> - divide
>profits by the capital stock. When I've done it, I've been surprised at
>how low returns are in some "developing" countries, and how high they are
>in some "developed" ones.

Well that's precisely what I'm finding and it seems so counterintuitive not to mention unsupported by traditional theories like Solow's growth theory...hmm. Thanks.

Diane



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