Code tool

Capital Output Ratio Calculator

Divide a capital stock by annual output on a consistent valuation basis.

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Use a nonnegative capital stock and positive annual output with the same currency, scale and price basis. State the reference year and whether each measure is gross or net; do not silently combine inconsistent definitions. K/Y is a stock-to-flow ratio measured in years when Y is per year. It is not ICOR (investment divided by change in output), a causal productivity measure or a cross-country ranking. Capital stock estimates can contain substantial measurement error.

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Conceptual reference: IMF

A QUICK WALKTHROUGH

How to use this tool

  1. Divide a capital stock by annual output on a consistent valuation basis.
  2. Use a nonnegative capital stock and positive annual output with the same currency, scale and price basis. State the reference year and whether each measure is gross or net; do not silently combine inconsistent definitions. K/Y is a stock-to-flow ratio measured in years when Y is per year. It is not ICOR (investment divided by change in output), a causal productivity measure or a cross-country ranking. Capital stock estimates can contain substantial measurement error.
  3. Calculate

Formula

K/Y = capital stock / annual output.

Assumptions and limits

Use a nonnegative capital stock and positive annual output with the same currency, scale and price basis. State the reference year and whether each measure is gross or net; do not silently combine inconsistent definitions. K/Y is a stock-to-flow ratio measured in years when Y is per year. It is not ICOR (investment divided by change in output), a causal productivity measure or a cross-country ranking. Capital stock estimates can contain substantial measurement error.

Local processing

Inputs stay in this browser; no data is fetched.

GOOD TO KNOW

Common questions

Assumptions and limits

Use a nonnegative capital stock and positive annual output with the same currency, scale and price basis. State the reference year and whether each measure is gross or net; do not silently combine inconsistent definitions. K/Y is a stock-to-flow ratio measured in years when Y is per year. It is not ICOR (investment divided by change in output), a causal productivity measure or a cross-country ranking. Capital stock estimates can contain substantial measurement error.