Capital intensity

Lower capital intensity is understood in economics (especially in the national accounts ), the ratio of required for the entire production of goods capital stock (fixed assets ) to the number of the required labor force, ie the use of capital per worker:

In this case, the capital stock is adjusted for price, so the value of fixed assets is calculated by keeping the prices of a particular base year constant. The price adjustment using the prices of a particular base year leads the Federal Statistical Office specially still for fixed assets through. The aggregates of the gross domestic product is now deflated using chain price indices.

Usually increases with productivity, capital intensity, there stands by technical progress, or better production technology and therefore usually associated job losses more of the production factor capital per worker is available, and thus more capital is used per worker. At the same time, a higher labor productivity through higher capital intensity, ie by increasing the use of means of production per worker, is achieved.

In the economist Nicholas Kaldor, capital intensity is also the determinant of labor productivity. In his technical progress function, the growth rate of labor productivity is a function of the growth rate of capital intensity.