Capital Return Rate Research Articles

Piketty in the light of Pasinetti and Foley: Income distribution, economic growth and financial fragility

ABSTRACT The paper discusses the hypothesis that the functional distribution of income is not necessary stable along the growth path of a capitalist economy. We reviewed Pasinetti and Foley models showing that if we use the traditional definition of capital, i.e., capital as the value of productive resources (i) r > g is a necessary condition for the existence of balanced growth, and it will not lead to an explosive process of income concentration and (ii) r > i is a necessary condition for a financially robust growth path. Thus we conclude that from a post-Keynesian perspective, Piketty's argument that the root of the increase of inequality in capitalism is that the capital return rate is higher than the growth rate of the economy is wrong.

Technical and economical evaluation of tape drip and drip line irrigation systems in a strawberry greenhouse

This study was done in a strawberry greenhouse to examine the technical and the economical evaluation of two drip irrigation systems including the tape and the drip line in the northern part of Iran. The result showed that all of the technical indices with tape were higher than drip line, and due to statistical analysis reveal a significant difference (P <em><</em> 0.05). Yield and water productivity (WP) with tape were higher than drip line (P <em><</em> 0.05). Benefit per drop (BPD) and net benefit per drop (NBPD) with tape were higher than drip line. Net present value, internal rate of capital return and benefit to cost ratio in drip line were higher than tape. In general, regarding technical evaluation tape was better than drip line, besides according to the economical evaluation the drip ­lines were better than tape.

The simulation and design air conditioner in unit 103 of south pars with use advance exergy

In this paper, energy recycling for distillation tower condenser was done by use of heat integration method. At first, we calculated the amount of condensation energy (QAir Cooler), in air cooler, and then we calculated energy consumption in this equipment based on annual balance (5460 GJ per year). Then, based on heat integration (energy unification), two conditions were proposed to use the current energies in the process for supplying condensation energy (QAir Cooler): first, its must be lesser than condensing temperature of condenser (55 ° C) (the major condition). Second, it must have much more flow rate than the overhead flow. According to two above conditions, the food flow as chosen as the integration factor and its amount of energy (EStream) is calculated from the Enthalpy equation as 9863964 kj/h. As EFeed >>> QAir Cooler and food flow temperature to condense an overhead vapor is satisfying. The food flow can be used to condense the saturated vapor to 55 ° C. in case of using food energy and using heat exchanger instead of air cooler; 5460 GJ energy will be saved annually. By using heat exchanger and omitting air cooler, the unit103 operating costs will be reduced considerably. Economically, conducting such a project will demand investing costs. However, obtainable incomes from doing this project (electricity consumption recycling and cost's reduction) reveal this fact that capital return rate and the project benefits for unit103 of South Pars phases2&3 are beneficial.

Application software for measuring the capital return rate by successive company valuation

Application software for measuring the capital return rate by successive company valuation

Market Value of the Firm, Market Value of Equity, Return Rate on Capital and the Optimal Capital Structure

The firm should pursue both maximum return rate on capital and maximum return rate on equity simultaneously. Maximum return rate on capital is the primary goal for firms because maximum return rate on capital guarantees efficiency. Therefore, maximum profit, maximum market value of the firm, maximum value of equity and maximum return rate on equity are inappropriate to be the primary goal. Since gross profit is independent of capital structure, capital structure just distributes return on capital into equity and debt (i.e., maximum return rate on equity determines capital structure). The maximum return rate on equity is the secondary goal that the firm pursues. Leverage makes the return rate on equity be higher than interest rate. Leverage explains the puzzle of equity premium.

The Impact of International Hot Money in International Commodity Future Markets during the Subprime Mortgage Crisis

Behavior of traders including investors and speculators in commodity future markets are studied before and after the subprime mortgage crisis. We put our attention on quantity of traders hold positions instead of price volatility or capital return rate of commodity future markets. By standardize correlation coefficients of net positions we try to quantify the impact of speculative funds on behalf of international hot money in international commodity futures markets in the subprime mortgage crisis. Parametric and non-parametric tests are used in this paper. The empirical results reveal that investment directions of speculators do change in crisis and they connect more tightly with markets compared with investors for that their find more opportunities and higher return rate during the Subprime mortgage crisis.

The Effect of Market Orientation on Business Performance of the Companies Designing and Manufacturing Clean Rooms

Problem statement: Theatrically claimed that there is relationship between market orientation and improvement of business performance of the companies, but the regular empirical research is carried out to understand deeply and prove these claims especially in Iranian environment. Considering the importance of market orientation, as well as lack of information on its effects, this study considered its effect on the business performance of companies engaging in clean room industry in Iran, while mentioning different viewpoints and theories on the market orientation. Approach: This study was a descriptive-survey, correlation-based research. Its population includes 110 units, from which, 80 units were selected as sample with using simple random sampling. Finally all study hypotheses were confirmed. At the present study, the different components were extracted for measuring business performance contains: Company effectiveness on the market, including success of new product, attracting the customer, keeping the customer and product quality. Domination over the market, including sale volume, sale growth, market share, financial performance, including profit, cash flows and rate of capital return. Results: The variables correlation coefficients in each of research hypothesis were respectively 0.671, 0.709, 0.659 and 0.517, which considering the acceptance criterion is 0.50 it can be concluded that there is a high correlation coefficient between each one variables. Finally all study hypotheses were confirmed. Conclusion: The positive and significant relationship between market orientation and business performance of the companies designing and manufacturing clean rooms was established though testing the principal hypothesis. In other words, it can be said that market orientation viewpoint on each of companies manufacturing clean rooms had positive influence on their business performance. Recommendations had been submitted as per market orientation components.

IMPACT OF RIGIONAL FACTORS ON PRODUCTIVITY IN CHINA*

ABSTRACT. The regional production environment in China is decomposed into five regional factors: education endowment, foreign direct investment, agglomeration, producer's market accessibility, and consumer's market accessibility. The impacts of these regional factors on the Chinese machinery building industry and food manufacture industry are estimated across 30 regions. The estimates are highly significant and show that these regional factors substantially affect regional productivity. Across regions and over time, the capital return rate is positively related to the ratio of the total regional factor impact to the wage rate.

INVESTMENT PRIORITIES IN SOVIET REGIONS

ABSTRACT The rate of capital return and marginal capital product in Soviet industry are estimated by geographic areas to discover whether the regional allocation of investment, particularly industrial capital, in the 1960s was guided by considerations of capital and labor productivity or by other motives. The underindustrialized western regions, where capital and labor productivity are satisfactory or high, have been slighted in favor of more easterly provinces. Regional investment allocation in recent years has been a subject of considerable disagreement. Proposals for regional specialization and large-scale projects for the exploitation of natural resources tend to divide Soviet scholars into pro-Siberian and pro-European factions.

Suggestions as to the Laws of Capital Return Under Conditions of Free Competition

In connection with the special interest that attaches, at the present time, to studies of costs of production and distribution, it is possible to suggest a complementary line of approach through the study of the actual rates of return on capital (including borrowed money) invested in productive and distributive enterprises. There is reason to believe that, in respect to such enterprises, operating under conditions of free competition, there are rather definite laws which govern the normal, or long period, distribution of the establishments and the in? vested capital by rates of capital return. The laws governing this distribution may be stated, tentatively, as follows: 1. Rates of capital return under conditions of free competition are determined not by the kind of production or distribution, but by certain constants, such as the ratio of invested capital to gross sales or output, the ratio of gross sales or output to the value added by manufacture or distribution, the relation of the business or industrial activ? ity to the normal business cycle, i. e., whether this activity fluctuates more widely or less widely than general business activity, etc. 2. In each particular line of production or distribution, prices are determined by the costs of operation of a group of establishments which earn, in the long run, only the rate of capital return reasonably neces? sary to maintain them. 3. In relation to this price-determining group of establishments, the entire investment in the industry, or distributive process, is arranged by rates of capital return in the form of a heavily skewed frequency curve, there being few establishments earning appreciably less than those of the price-determining group, but a very considerable number earning higher rates of return. 4. In industries or distributive processes where the rate of capital turn-over is high, where the ratio of value added by manufacture or distribution to the total value of output or sales is low, or where business activity fluctuates more widely than general business activity, the spread of the frequency curve is relatively great and the ratio of the average rate of capital return to the rate of capital return in the pricedetermining group is high. The preceding suggestions as to the laws which govern capital re-