What does MPK stand for?

If a tax increase leads to a decline in capital, the marginal product of capital tends to rise, which would offset some of the initial decline in capital income (Mulligan 2007).

The Wicksell effect refers to the situation where the marginal product of capital is not equal to the rate of profit, or the rate of interest.

Figure 5 illustrates this process in a capital-exporting country where the pre-tax marginal product of capital curve shifts upwards from the demand for capital curve as a result of reduced immobile factors expenses stemming from both the imposition of source-based taxation and the threat of capital outflow.

Martin Feldstein (1998) argues that the marginal product of capital is greater than the growth rate of aggregate wage.

Since advanced technical knowledge and modern managerial know how are at a premium in East European economies at large it is only welcome from the host country perspective that non only industries with capital inflows will benefit but almost all sector; there will be positive know how spillovers and costless imitations that increase the marginal product of capital and labor.

t] were equal to 3/2, and the average marginal product of capital between the 9th and the 12th unit of [k.

Firms hire labor until the marginal product of labor is equal to the wage, and rent capital until the marginal product of capital is equal to the rental price.

3) As Robert Lucas once pointed out forcefully, differences in the marginal product of capital between industrialized countries and emerging countries are large.