[PEN-L:11000] K/Y ratio

[PHILLPS@xxxxxxxxxxxxxxxx]

Doug,
  Could not there be an additional explanation in the so-called
Leontieff paradox  -- that the US exports labour intensive goods
because the labour embodies a great deal of 'human capital'.  That
is, is it not possible that when human capital is added to physical
capital, the K/Y ratio would rise both absolutely and relatively.
This would also imply that capital is exploiting the workers
investment in human capital as well.
Paul
Paul Phillips,
University of Manitoba.