The Stock Market and Capital Accumulation
- 1 December 2001
- journal article
- Published by American Economic Association in American Economic Review
- Vol. 91 (5), 1185-1202
- https://doi.org/10.1257/aer.91.5.1185
Abstract
The value of a firm's securities measures the value of the firm's productive assets. If the assets include only capital goods and not a permanent monopoly franchise, the value of the securities measures the value of the capital. Finally, if the price of the capital can be measured or inferred, the quantity of capital is the value divided by the price. A standard model of adjustment costs enables the inference of the price of installed capital. Data from U.S. corporations over the past 50 years imply that corporations have formed large amounts of intangible capital, especially in the past decade. (JEL E44, G12)Keywords
Other Versions
This publication has 14 references indexed in Scilit:
- The Stock Market and Investment in the New Economy: Some Tangible Facts and Intangible FictionsBrookings Papers on Economic Activity, 2000
- The Corporate Cost of Capital and the Return on Corporate InvestmentThe Journal of Finance, 1999
- Perspectives on the Household Saving RateBrookings Papers on Economic Activity, 1999
- Valuation Ratios and the Long-Run Stock Market OutlookThe Journal of Portfolio Management, 1998
- Implications of Security Market Data for Models of Dynamic EconomiesJournal of Political Economy, 1991
- Production‐Based Asset Pricing and the Link Between Stock Returns and Economic FluctuationsThe Journal of Finance, 1991
- Tobin's Marginal q and Average q: A Neoclassical InterpretationEconometrica, 1982
- Arbitrage and equilibrium in economies with infinitely many commoditiesJournal of Mathematical Economics, 1981
- Productivity and the Services of Capital and LaborBrookings Papers on Economic Activity, 1981
- Technical Change and Capital from the Point of View of the DualThe Review of Economic Studies, 1968