{"id":2357,"date":"2014-04-04T13:50:52","date_gmt":"2014-04-04T17:50:52","guid":{"rendered":"http:\/\/www.silver-investor.com\/blog\/?p=2357"},"modified":"2018-06-10T10:55:53","modified_gmt":"2018-06-10T10:55:53","slug":"the-marginal-efficiency-of-capital","status":"publish","type":"post","link":"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/","title":{"rendered":"The Marginal Efficiency of Capital"},"content":{"rendered":"<p>The Marginal Efficiency of Capital<br \/>\nby Edward W. Fuller<br \/>\nThe following paper was written by a friend of TMR that occasionally helps with our research.  by Edward W. Fuller<br \/>\nThe purpose of this paper is to explain the marginal efficiency of capital. The net present value diagram is derived and used to illustrate how the interest rate regulates the intertemporal allocation of resources. The net present value diagram is then used to show that the marginal efficiency of capital contradicts the net present value method of ranking investment projects. The net present value diagram is integrated into the capital-based framework to demonstrate that the interest rate cannot regulate the intertemporal allocation of resources in Keynes\u2019s theory of investment.<br \/>\nRead full paper here&#8230; <a href=\"http:\/\/bit.ly\/1oyrCuT\" target=\"_blank\">http:\/\/bit.ly\/1oyrCuT<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Marginal Efficiency of Capital by Edward W. Fuller The following paper was written by a friend of TMR that occasionally helps with our research. by Edward W. Fuller The purpose of this paper is to explain the marginal efficiency of capital. The net present value diagram is derived and used to illustrate how the<span class=\"read-more\"><a href=\"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/\" title=\"Read More\">More<\/a><\/span><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[121,89],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Marginal Efficiency of Capital<\/title>\n<meta name=\"description\" content=\"The Marginal Efficiency of Capital\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Marginal Efficiency of Capital\" \/>\n<meta property=\"og:description\" content=\"The Marginal Efficiency of Capital\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/\" \/>\n<meta property=\"og:site_name\" content=\"The Morgan Report News\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/pages\/The-Morgan-Report\/317004435015437\" \/>\n<meta property=\"article:published_time\" content=\"2014-04-04T17:50:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2018-06-10T10:55:53+00:00\" \/>\n<meta name=\"author\" content=\"David Morgan\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@silverguru22\" \/>\n<meta name=\"twitter:site\" content=\"@silverguru22\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"David Morgan\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/\",\"url\":\"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/\",\"name\":\"The Marginal Efficiency of Capital\",\"isPartOf\":{\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#website\"},\"datePublished\":\"2014-04-04T17:50:52+00:00\",\"dateModified\":\"2018-06-10T10:55:53+00:00\",\"author\":{\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/2f153b749f1b9c4e76eacf9ee3cc046a\"},\"description\":\"The Marginal Efficiency of Capital\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#website\",\"url\":\"https:\/\/www.themorganreport.com\/blog\/\",\"name\":\"The Morgan Report News\",\"description\":\"Helping You Build And Preserve Wealth\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.themorganreport.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/2f153b749f1b9c4e76eacf9ee3cc046a\",\"name\":\"David Morgan\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/5580128866d1436555aa5bfafd8133d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/5580128866d1436555aa5bfafd8133d2?s=96&d=mm&r=g\",\"caption\":\"David Morgan\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Marginal Efficiency of Capital","description":"The Marginal Efficiency of Capital","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/","og_locale":"en_US","og_type":"article","og_title":"The Marginal Efficiency of Capital","og_description":"The Marginal Efficiency of Capital","og_url":"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/","og_site_name":"The Morgan Report News","article_publisher":"https:\/\/www.facebook.com\/pages\/The-Morgan-Report\/317004435015437","article_published_time":"2014-04-04T17:50:52+00:00","article_modified_time":"2018-06-10T10:55:53+00:00","author":"David Morgan","twitter_card":"summary_large_image","twitter_creator":"@silverguru22","twitter_site":"@silverguru22","twitter_misc":{"Written by":"David Morgan","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/","url":"https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/","name":"The Marginal Efficiency of Capital","isPartOf":{"@id":"https:\/\/www.themorganreport.com\/blog\/#website"},"datePublished":"2014-04-04T17:50:52+00:00","dateModified":"2018-06-10T10:55:53+00:00","author":{"@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/2f153b749f1b9c4e76eacf9ee3cc046a"},"description":"The Marginal Efficiency of Capital","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.themorganreport.com\/blog\/the-marginal-efficiency-of-capital\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.themorganreport.com\/blog\/#website","url":"https:\/\/www.themorganreport.com\/blog\/","name":"The Morgan Report News","description":"Helping You Build And Preserve Wealth","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.themorganreport.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/2f153b749f1b9c4e76eacf9ee3cc046a","name":"David Morgan","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.themorganreport.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/5580128866d1436555aa5bfafd8133d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/5580128866d1436555aa5bfafd8133d2?s=96&d=mm&r=g","caption":"David Morgan"}}]}},"_links":{"self":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/2357"}],"collection":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/comments?post=2357"}],"version-history":[{"count":1,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/2357\/revisions"}],"predecessor-version":[{"id":5396,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/posts\/2357\/revisions\/5396"}],"wp:attachment":[{"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/media?parent=2357"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/categories?post=2357"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.themorganreport.com\/blog\/wp-json\/wp\/v2\/tags?post=2357"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}