Capital and labour markets - COFFEE-TEA

${\displaystyle K{_{r,t}}=I{_{r,t}}+(1-\delta {_{r}})K{_{r,t-1}}}$
where: ${\displaystyle K{_{r,t}}}$ is the capital stock in region r and time t; ${\displaystyle I{_{r,t}}}$ is the investment in new capital goods in region r and time t; ${\displaystyle \delta {_{r}}}$ is the depreciation rate of capital in region r.