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But a rising capital-output ratio is perfectly normal when a poor country shifts from agriculture to more capital-intensive industry.
A popular economic measure is the incremental capital-output ratio (ICOR) which divides annual investment by the annual increase in GDP.
Research and development tax credits, or "patent box" policies which target income generated from research rather than the research itself (a problem in a country with a below average R&D-to-output ratio), simply cut government tax revenue and don't make R&D happen that would not have happened anyway.
China's incremental capital-output ratio (ICOR), a measure of how much investment it takes to achieve each percentage point of growth, rose to 5.4 in 2012 from 3.6 over the preceding two decades, according to the World Bank.
Continuously (or infinitely) variable transmissions provide a very efficient means of transferring engine power and, at the same time, automatically changing the effective input-to-output ratio to optimize economy by keeping the engine running within its best power range.
Mr Lee and co-authors point out that China now requires ever higher investment to generate the same rate of growth (its incremental capital-output ratio, as economists call it, is rising).
The gained output ratio (GOR) of the system reaches 1.058.
The gained output ratio (GOR) of the system reaches 7.5.
Open image in new window Fig. 5 Capital-output ratio in benchmark model.
The output ratio of the digital compressor was determined in the control strategy.
The efficiency of the system is measured by the gained output ratio (GOR) with day time.
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