### Formula or Equation

Incremental capital output ratio for sector or industry | Incremental capital-output ratio,ICOR |

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

Output_{t} | output |

Output_{t-1} | output |

Incremental capital output ratio for sector or industry | Incremental capital-output ratio,ICOR |

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

Output_{t} | output |

Output_{t-1} | output |

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})

Output (Output_{t})

Output (Output_{t-1})

Incremental capital-output ratio (Incremental capital output ratio for sector or industry)

Precision

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