### Formula or Equation

ICOR for the total economy or for a country | Incremental capital-output ratio,ICOR |

Gross investment in time period t I_{t} | gross investment,GI |

GDP_{t} | gross domestic product,GDP |

GDP_{t-1} | gross domestic product,GDP |

ICOR for the total economy or for a country | Incremental capital-output ratio,ICOR |

Gross investment in time period t I_{t} | gross investment,GI |

GDP_{t} | gross domestic product,GDP |

GDP_{t-1} | gross domestic product,GDP |

The incremental capital output ratio (ICOR) is defined as the ratio between investment in some previous period(s) and the growth in output in the subsequent period. Needless to say, ICOR calculation is based on constant price data.

Gross investment (Gross investment in time period t *I*_{t})

Gross domestic product (GDP_{t})

Gross domestic product (GDP_{t-1})

Incremental capital-output ratio (ICOR for the total economy or for a country)

Precision

- Wikipedia article: Incremental capital-output ratio.
- Incremental Capital-Output Ratio (ICOR).