Q: What is 'Incemental Capital-Output Ratio' (ICOR) and what does the number explain?
A: Simply, ICOR is the ratio of investment to output. If the number is high then the economy requires a big amount of investment to produce a certain output level . Hence, high ICOR constitutes inefficiency.
An example of high ICOR is: Ghana. They produced a lot of shots on goals, but did produce any goals against Brazil. Other example: Holland in Eur0 2000 when they were defeated by Italy in the semifinal, or Manchester United's Andy Cole a few years back.
World Cup
He..he.. another exception from self impose ban of footballnomics/ econofootball.
ReplyDeleteOne professor tell me that a rule/theory with too many exception is hardly a rule/theory
Berly - as our customer you have the right... to remain silent! :-)
ReplyDelete