Capital Output Ratio

Knowledge Center

Summary, forum, best practices, expert tips and information sources.


What is the Capital Output Ratio? Meaning.

Capital Output Ratio is the ratio that shows the amount of units of capital that are needed to produce a certain level of output.

A high capital output ratio means a large amount of capital is needed for production as economic growth increases, and therefore exaggerates the trade cycle.

The Accelerator Theory suggests that the level of net investment will be determined by the rate of change of national income. If national income is growing at an increasing rate then net investment will also grow, but when the rate of growth slows net investment will fall. There will then be an interaction between the multiplier and the accelerator that may cause larger fluctuations in the trade cycle.

Special Interest Group


Capital Output Ratio Special Interest Group.

Special Interest Group (11 members)


New Topic

Forum about the Capital Output Ratio.

🔥 NEW Capital Output Ratio and Economic Development
What is the role of capital output ratio in economic development? (...)
Weaknesses of Capital Output Ratio
Capital output ratio relates to economic growth through changes in level of investment. But in failing to make the cruci (...)


Best Practices

Sign up

The top-rated topics about the Capital Output Ratio. Here you will find the most valuable ideas and practical suggestions.

Expert Tips

Sign up

Advanced insights about the Capital Output Ratio. Here you will find professional advices by experts.

Information Sources

Sign up

Various sources of information regarding the Capital Output Ratio. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.

Research Links

Sign up

Automatically jump to further useful sources regarding the Capital Output Ratio.

News Videos Presentations Books More






Special Interest Group

Are you interested in the Capital Output Ratio? Sign up for free

Notify your students

Copy this into your study materials:

and add a hyperlink to:

Link to this knowledge center

Copy this HTML code to your web site:


Return to Management Hub: Finance & Investing

More on Management  |  Return to Management Dictionary


This ends our Capital Output Ratio summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2021 12manage - The Executive Fast Track. V15.8 - Last updated: 18-4-2021. All names of their owners.