Modeling the material stock of manufactured capital with production function

In this article, a condition determining the weight of annual output relative to the specific type of capital stock is discussed as well. Furthermore, the significance of the internalization of externalities during the life cycle of the built capital stock is analyzed, with a correspondence to standard microeconomic theory. Although marginal product of machinery and ICT exceeds significantly those of buildings and infrastructures in the studied sectors, material stock of buildings and infrastructure are higher, hence they are available at lower per unit cost.