#1997-020A "Does the United States Invest Too Little?"
by Milka S. Kirova, and Robert E. Lipsey
November 1997

The standard measures of nominal capital formation show the United States investing a proportion of GDP much lower than those of other developed countries throughout the last 25 years and falling further behind over time. In contrast, measures we have calculated in real terms across countries and over time indicate that U.S. investment ratios have been rising over time and have been coming closer and closer to those of the other countries. More...