Britain's Capital Evolution Drives Economic Growth Shift Towards Modernization
The article examines how capital and economic growth in Britain changed from 1270 to 1870. It shows that fixed capital became more important over time, while land became less important. The study confirms that the ratio of capital to labor increased and the ratio of capital to output stayed stable, but only when looking at fixed capital. It suggests that output growth was mainly due to more resources being used, while productivity growth was more important than increasing capital in explaining growth per person. The share of money invested in the economy went up a lot during the shift from older to more modern economic growth.