capital intensity



Health Economics

  • (written as Capital Intensity)
    A production process (like health care) can be characterized in terms of its capital intensity. This is a measure of the use of capital relative to other factors of production, such as labour, in the production process. It is usually measured by the ratio of capital to labour or by the share of capital in total factor payments. Health care is relatively labour intensive despite all the fuss made about modern health care technologies.