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Declining Labor and Capital Shares

Simcha BarkaiFinance资产定价UTD24
Journal of Finance2020-04-27DOI
Citations670

ABSTRACT This paper presents direct measures of capital costs, equal to the product of the required rate of return on capital and the value of the capital stock. The capital share, equal to the ratio of capital costs and gross value added, does not offset the decline in the labor share. Instead, a large increase in the share of pure profits offsets declines in the shares of both labor and capital. Industry data show that increases in concentration are associated with declines in the labor share.

Fixed capitalWage shareCapital intensityCost of capitalPhysical capitalEconomicsCapital (architecture)Labour economicsCapital deepeningReturn on capitalMonetary economicsCapital formation