How the Wealth Was Won

Factor Shares as Market Fundamentals

Datos Bibliográficos

ID10172932
AutoresDaniel Greenwald, Daniel L Greenwald, Martin Lettau (0000-0003-4049-4706), Sydney C Ludvigson (0000-0003-3704-8713)
Año2024
Volumen133
Número4
Páginas1083-1132
Fecha de publicación2024-11-21
Open AccessNo
TipoARTICLE
RevistaJournal of Political Economy (JOURNAL)
Identificadores de la revistaISSN: 0022-3808 • E-ISSN: 1537-534X
EditorialUniversity of Chicago Press (PUBLISHER • US)
DOI10.1086/734089
OpenAlexW3143375034
IdiomaEN
Citas recibidas1
Referencias citadas54

We provide novel evidence on the driving forcesbehind the sharp increase in equity values over the post-war era. From the beginning of 1989 to the end of 2017, 23 trillion dollars of real equity wealth was created by the nonfinancial corporate sector. We estimate that 54% of this increase was attributable to a reallocation of rents to shareholders in a decelerating economy. Economic growth accounts for just 24%, followed by lower interest rates (11%) and a lower risk premium (11%). From 1952 to 1988 less than half as much wealth was created, but economic growth accounted for 92% of it

Corporate governance · Economic rent · Economics · Equity (law · Equity premium puzzle · Market economy · Monetary economics · Risk premium · Shareholder · Finance · Financial Literacy, Pension, Retirement Analysis · Financial Markets and Investment Strategies · Housing Market and Economics

Herramientas

Abrir DOI