El coste de uso del capital en la explicación del boom de la inversión europea de posguerra
AbstractPost-war Europe provides an opportunity to study the importance of relative prices of capital, and the user cost of capital in particular, in explaining the convergence in investment rates between countries of similar “social capabilities” and income levels. After Second World War, at time as a new international order was established, European countries experienced a rapid process of income growth and convergence. In the interpretation of this process a prominent role has been attributed to technological progress and “catch-up” to the technological leader, the United States. Investment decisions are the way for embodying new technological progress, but investment takes place only when incentive exists. Among these incentives, recent empirical literature on economic growth highlights the role of relative prices of capital in explaining differences in investment rates and income growth between countries with very different income levels. But when we reduce the sample to countries closed in income levels and “social capabilities”, we can demonstrate that, although the relative cost of capital converged over time and could help to explain income convergence, other factors were more significant in explaining the increase in investment rates. More important than the user cost of capital in the investment decision, was general prosperity caused by the demand increase.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Universidad Carlos III, Departamento de Historia Económica e Instituciones in its series Working Papers in Economic History with number dilf0505.
Date of creation: Apr 2005
Date of revision:
Contact details of provider:
Postal: Campus de Getafe, C/ Madrid, 126, 28903 GETAFE (MADRID)
Phone: +34-91 624 9599
Web page: http://www.uc3m.es/uc3m/dpto/HISEC/01presentacion.html
More information through EDIRC
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-08-12 (All new papers)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.