It was an unusually bold and unexpected reform step that could induce new capital inflows and so help strengthen the rupee without needing to spend India's large $320bn pool of foreign reserves.
A 10% decline in the user cost of capital induced by an increase in R&D tax incentives raises the number of stars by 22%.
This is the result obtained when simple labor supply decision micro models are enriched with the sort of dynamics induced by human capital accumulation, or when macro models allow for presence of the extensive margin (Keane and Rogerson 2012).
It surveys and illustrates the determinants of capital productivity and pollution-induced capital depreciation.
In South Africa, the continent's biggest economy, capital inflows induced a rally in the rand, which last month rose to its highest level against the dollar in almost three years, undermining key export-led industries.
Recessions were induced by excesses in capital spending and inventories, not trillions of dollars of bad paper held by banks and insurance underwriters.
The estimation results imply that even a temporary migration spell could induce increased human capital investments.
Meanwhile, low standards, the presumption of entitlement, and the desire to impress supervisors, upper management, and venture capital induce the filing of tens of thousands of patents each of which may have dozens of claims.
For the monetary policy rate, this could be interpreted as the impact that higher interest rates have on labor demand independently from the aggregate demand, and possibly induced by changes in the capital-to-labor ratio, as the cost of capital increases relative to labor.
What happens is that most emerging economies use their monetary policy to finance their public-sector deficit, or they finance it by attracting capital from abroad, induced by high interest rates.
During the bull market the lure of option wealth and the prospect of fresh capital for expansion induced some well-known mutuals, including MetLife and John Hancock, to convert into stock companies.
