What is Capital Stock?

From the perspective of enterprise capital management, capital stock refers to all existing capital resources of an enterprise, and it usually reflects the current scale of production and operation and the technical level of the enterprise. At the same time, the capital stock is the sum of various types of capital that have been invested in the enterprise. It exists in the form of assets and is also called asset stock. According to its state in the production process, it can be divided into two categories: the stock of assets that are participating in reproduction and the stock of assets that are idle include idle factories, machinery and equipment.

Capital stock

Stock

stock, a classification of the nature of a variable, corresponding to a "flow" flow

Capital stock adjustment theory: This is a cycle theory that appeared in the 1930s and was widely spread after World War II. Friech, Norway (1895 ~ 1973), The Problem of Diffusion and Impact in Dynamic Economics (1933)

Kaldor Business Cycle Model

Explain the periodic phenomenon. Here Kaldo introduced a non-linear investment function and believed that investment depends not only on income Y but also on the existing capital stock K. Under the given income conditions, the larger the capital stock, the smaller the investment required;

Histogram of willing capital stock

Conversely, the smaller the capital stock, the greater the investment required. Under the established conditions of capital stock, the larger the income, the larger the investment, and the investment and income change in the same direction. If we ignore the change in the interest rate, the investment function can be written as: I = I (Y, K)

When investment takes a non-linear form, the intersection of the investment curve and the savings curve cannot be more than one above and below a given capital stock. Taking I1 (K = K1) as an example, the equilibrium points determined by I1 are three points: A, B, and C.

Effective demand

Effective_demand

Assuming the premise, establish the income-expenditure model of the national economy. On the left side of the equation, W is the salary, D is the depreciation, R is the interest, and is the profit. Where D = dK, that is, the depreciation equals the product of the depreciation rate and the capital stock. R = iK, that is, interest is the interest rate and

Cardo

Product of capital stock. On the right side of the equation, C is consumption and I is investment. (W + D + R + ) constitutes total revenue and (C + I) constitutes total expenditure. When total expenditure (C + I) is greater than total cost (W + D + R), profit ()> 0; when total expenditure (reduced production; = 0), the economy is in a stable state. The most important here It is the connection between the investment flow and the capital stock, that is, the investment flow in this period is converted into the capital stock in the next period (ie Kt = Kt-1 + It, Dt = Dt-1 + dIt-1).

Growth accounting

Growth_accounting_approach

Y_t is the actual output, L_t is the labor input, K_t is the capital stock, and and are the average capital output share and the average labor output share, respectively. Take natural logarithms on both sides. (A) + \ alphaLn (K_t / L_t) + \ varepsilon_t This is a double logarithmic model that can be estimated using OLS. The capital stock needs to be calculated. The calculation formula is: K_t = I_t / Pt + (1- \ delta_t) K_ {t-1} where Kt is the actual capital stock in t years.

Capital stock

New economic growth theory

New_Economic_Growth_Theory

= F (K, L, H, t) where Y is the total output and K, L, and H are the physical capital stocks, respectively

Effective requirements analysis

, Labor input and human capital (intangible capital) stock, t represents time. The models that have an impact on this include the model of learning by doing and the theory proposed by Arrow and Luo. Capital increases output not only through its direct contribution to production, but also through its indirect promotion of the development of new ideas. But technology is still exogenous in this model, and it changes with the endogenous capital stock. In the new economic growth theory proposed by Romer et al., The knowledge vitality is fully valued. One of the important contents of the New Economic Growth Theory is to expand the definition of "labor force" in the neoclassical growth model to human capital investment, that is, manpower includes not only the absolute amount of labor force and.

Solow economic growth model

Solow_Growth_Model, neoclassical economic growth model, exogenous economic growth model, Solow economic growth model, neoclassical economic growth theory, Solow's economic growth theory, neoclassical growth theory, Solow model, Solow_Model, Solow_growth_model, SOLOW_GROWTH_MODEL, The_solow_growth_model.

Capital and labor can replace the neoclassical Cobb-Douglas production function, thereby solving the problem that the economic growth rate and population growth rate in the Harold-Domar model cannot be spontaneously equal. Because in the Cobb-Douglas production function, the amount of labor is fixed, and as the capital stock increases, the law of diminishing marginal returns of capital ensures that economic growth is stable at a specific value. The model has no investment expectations, thus avoiding the instability between the guaranteed economic growth rate and the actual economic growth rate.

Marginal efficiency of capital

Marginal_Efficiency_of_Capital, MEC.

But Keynes also believed that the marginal efficiency of capital diminishes as the amount of investment increases, it is a left-to-right

Capital stock

Slanted curve below. Because with the increase in investment, the capital stock increases. On the one hand, the cost of capital assets will increase (the same machine costs more). On the other hand, the supply of goods produced by assets will increase, so expected returns will decrease. Keynes believes that the marginal efficiency of capital decreases with increasing investment, mainly due to the rise in the cost of capital in the short term, and the large accumulation of capital stock in the long term (there are fewer and fewer investment opportunities to choose from.

Tobin effect

Tobin's Law, Tobin_Effect, Tobin_effect

The currency and the Tobin effect in the "Tobin effect" portfolio

Tobin (1965), for the first time, explicitly combined the monetary factor with the growth theory, and obtained the asset combination mechanism between the increase in money supply and capital formation. On the basis of the non-monetary neoclassical growth model, Tobin takes the real money balance as a substitute asset for physical capital, that is, the total per capita wealth (at) equals the per capita capital stock (kt) and the per capita real money balance (mt). Sum. Therefore, the inflation caused by the increase in the growth rate of the money supply has a positive effect on the capital stock and will lead to higher output levels. This is the so-called "Tobin effect". Inflation has a positive effect on the growth rate of real output.

Harold-Domar Economic Growth Model

Harold-Domar Model, Blade Growth Model, Harold-Domar Growth Model, Harold-Domar Growth Model, Harrod-Domar_Growth_Model, Harrod-Domar Model, Harold Domar Model, Harold Thomas

Solow economic growth model

Type, Harold-Domar economic growth model, H-D model: the first variable is the savings rate S, S = X / Y (X is the amount of savings, Y is the national income); the second variable is capital production The ratio V, V = K / Y (K is the capital stock) The third variable is a guaranteed growth rate, that is, when S and V are known, in order to save the total investment output (Y), capital stock (K ) And investment can grow year after year at the growth rate Gw. Investment has a dual effect. Not only can it increase aggregate demand, but it can also increase aggregate supply. In order to keep the expanding production capacity of new investment year by year, the growth rate of investment (and thus the growth rate of capital stock) exceeds the growth rate of labor On the occasion, the capitalist will further reduce his investment, so that the actual growth rate G is less than the guaranteed growth rate Gw, and it will be in a long-term economic depression.

Physical capital

Material_Capital, Physical_Capital, physical capital, tangible capital, Tangible_Capital, Material_capital, Physical_capital, Real_capital, Real_Capital.

Showing a strong diminishing marginal return trend, while human capital shows a strong margin

Marginal efficiency substitution rate

Increasing trend of marginal returns; that is, the fundamental value of human capital lies in the productivity attribute of increasing marginal returns. Economic growth is faster than the growth of physical capital stock. The factor may not necessarily be physical capital, but it is most likely due to inadequate management or backward technical skills of workers. As a result, output can be increased through improved management and training of workers.

Second, develop economies of scale. The physical capital stocks of developing countries have little or no growth. For example, environmental capital stocks are shown through high-quality water, fresh air, forest coverage, and species diversity. Part of social capital is materialized in non-operating material capital such as social institutions, places, social management equipment, and documents.

Corporate organizational capital

Enterprises_organizational_capital, Organizational Capital, Enterprises_Organizational_Capital, Organizational_Capital, Organizational Capital of an Enterprise, Organizational_capital.

Expenses of Organizational Capital Formation. Because organizational capital is mainly formed by the process of information exchange and learning among organizational members and within the organization, and this process requires time, channels, feedback and identification, and even learning, and long-term accumulation, related costs will inevitably occur. Studies have shown that the cost of integrating the size of the organization's capital stock has led companies to constrain their own growth rate, which in turn explains the relationship between business growth and scale output.

Replacement investment

Depreciation investment, Replacement_Investment, Replacement_investment.

Harold-Domar Economic Growth Model

The stock is running without boosting economic growth. However, this is not the case. The inconsistency between the replacement fee and the depreciation fee will make the replacement investment a net investment.

In the real economy, what needs to be replaced every year is the capital formed by investment several years ago, which will undoubtedly have a greater and greater impact on corporate investment tax burden. In this case, the government allows or encourages enterprises to accelerate depreciation, which not only provides the company with the opportunity to replace the old equipment with new equipment in a timely manner, but also increases the capital stock in the economy and thus promotes economic growth .

Update policies as appropriate:

At the beginning of the country s economic growth, it was understandable that economic growth mainly relied on capital construction investment, but with the economic growth, the capital stock of the economy also continued to increase, and more and more fixed capital reached a level that needed to be renewed.

Talent Capital Management Strategy

Human capital

Quality, and the accumulation of capital stock of human capital. This is mainly because investment in human capital

Material capital comparison chart

It is subject to the constraints of established productivity and production relations. Second, due to the constraints of historical and social conditions, the role and scope of human capital will also be restricted to varying degrees. The former human capital carrier could not accomplish the present thing, and the contemporary human capital carrier could not use its existing capital stock to do all the things that the human capital carrier did in the past. The long-term nature of human capital investment. Material capital, human capital, human capital, scarce resources. First, no matter what the superior conditions are, the amount of human capital available to a person and the time required to maintain and continuously update it are limited; second, the formation and increase of human capital requires labor, time, and money And other scarce resources