What's Behind the Recent Rise in Profitability?
Jerome Levy Economics Institute Working Paper No. 297
20 Pages Posted: 14 Sep 2000
Date Written: March 2000
Abstract
Profitability in the United States has been rising since the early 1980s and by 1997 was at its highest level since its postwar peak in the mid 1960s, and the profit share, by one definition, was at its highest point. In this paper I examine the role of the change in the profit share and capital intensity, as well as structural change, on movements in the rate of profit between 1947 and 1997. Its recent recovery is traced to a rise in the profit share in national income, a slowdown in capital-labor growth on the industry level, and employment shifts to relatively labor-intensive industries.
JEL Classification: E23, E25
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Equity Share in New Issues and Aggregate Stock Returns
By Malcolm P. Baker and Jeffrey Wurgler
-
The Equity Share in New Issues and Aggregate Stock Returns
By Malcolm P. Baker and Jeffrey Wurgler
-
The Maturity of Debt Issues and Predictable Variation in Bond Returns
By Malcolm P. Baker, Robin M. Greenwood, ...
-
The Maturity of Debt Issues and Predictable Variation in Bond Returns
By Malcolm P. Baker, Robin M. Greenwood, ...
-
The Corporate Cost of Capital and the Return on Corporate Investment
By Eugene F. Fama and Kenneth R. French
-
The Aggregate Change in Shares and the Level of Stock Prices
-
By Ajay Khorana, Michael J. Cooper, ...