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Unformatted text preview: to period the of start at the capital of units K buying investor an For . is on depreciati physical of rate the and , is rate interest nominal the , is sector in the progress technical of rate the , is inflation of rate the period, the of start at the good capital the acquire to price the is time, of period a during capital of price rental the be Let δ ρ δρ + +-≈-+ + +-=-+--+ = +-+-+ + = i r i i r PK RK i r PK RK r i KP r RK PK r i P R The Rental Price of Capital...
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This note was uploaded on 04/07/2008 for the course ECO 100 taught by Professor R.willig during the Spring '08 term at Princeton.
- Spring '08