Assessing Eastern Europe's Capital Needs

February 1, 1992

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Format: Chicago

Anthony R. Boote Assessing Eastern Europe's Capital Needs, (USA: International Monetary Fund, 1992) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper aims at assessing the capital needs of Eastern Europe in catching up to EC standards of living using the framework of a CES (constant elasticity of substitution) production function model. This function, parameterized on the EC, is assumed to apply with certain inefficiency factors in Eastern Europe in 1992. Quantitative results, given the heroic set of assumptions required, are bounded by large ranges. The approach provides a framework for assessing the factors which will determine the future capital needs in Eastern Europe and underscores the crucial role of efficiency gains in this process.

Subject: Exchange rates, Financial institutions, Foreign exchange, Income, Labor, National accounts, Purchasing power parity, Stocks

Keywords: Capital, Eastern Europe, EC average, EC catch up, EC efficiency level, EC level, EC production function, EC standards of living, Exchange rates, Income, Labor ratio, Purchasing power parity, Rate of return, Stocks, WP

Publication Details

Pages:

24
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1992/012
Stock No:

WPIEA0121992
ISBN:

9781451842821
ISSN:

1018-5941

Notes

Also published in Staff Papers, Vol. 39, No. 4, December 1992.

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