Assessing Eastern Europe's Capital Needs
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.
Series:
Working Paper No. 1992/012
Subject:
Exchange rates Financial institutions Foreign exchange Income Labor National accounts Purchasing power parity Stocks
Notes:
Also published in Staff Papers, Vol. 39, No. 4, December 1992.
English
Publication Date:
February 1, 1992
ISBN/ISSN:
9781451842821/1018-5941
Stock No:
WPIEA0121992
Pages:
24
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