5 ms·
That doesn't really make sense. r isn't a growth rate of the share of ownership on capital. It's a return on capital, i.e. the growth rate of capital. r implies
by om2 10y ago
That doesn't really make sense. r isn't a growth rate of the share of ownership on capital. It's a return on capital, i.e. the growth rate of capital. r implies nothing about the change in total value of capital assets. Total capital assets could double or halve and r wouldn't have to change. in fact, under most circumstances, the value of capital assets and the return on capital move in opposite directions.