Hence capital stock rises till the economy reaches a new steady state. The output (income) worker rises on the account of increased the capital per worker.Because savings and investment add to the stock of capital, more investment in capital leads to more economic growth. Capital stock refers to the total value of all physical assets and equipment that a company uses to produce goods and services. Capital stock authorized is the number of shares of stock that a corporation is entitled to issue as designated in its charter. This paper reconsiders the traditional approach to human capital measurement in the study of cross-country income differences.