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Traditional and Leontief Capital-Output Ratios in the Calcutta Industrial Region
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The capital output ratio or the capital coefficient has played an important part in development planning for some time now. It is variously defined as capital to gross-output ratio, capital to gross-value added and capital to net value added ratio.
Let us denote:
Cost of Capital = C
Annual Depreciation of Capital = D
Annual Gross Output =Ol
Cost of Raw Materials =R
Let us denote:
Cost of Capital = C
Annual Depreciation of Capital = D
Annual Gross Output =Ol
Cost of Raw Materials =R
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