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Equity Prices, Productivity Growth and ‘The New Economy’

Datos Bibliográficos

ID9715558
AutoresJakob B Madsen (0000-0002-4952-3043, University of Copenhagen and Monash University), E Philip Davis (0000-0002-3241-8626, Brunel University)
Año2006
Volumen116
Número513
Páginas791-811
Fecha de publicación2006-07-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaThe Economic Journal (JOURNAL)
Identificadores de la revistaISSN: 0013-0133 • E-ISSN: 1468-0297
EditorialOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2006.01112.x
OpenAlexW2120156783
IdiomaEN
Citas recibidas5
Referencias citadas45

The sharp increase in equity prices over the 1990s was widely attributed to permanently higher productivity growth derived from the New Economy. This article establishes a rational expectations model of technology innovations and equity prices, which shows that under plausible assumptions, productivity advances can only have temporary effects on the fundamentals of equity prices. Using historical data on productivity of R&D capital, patent capital and fixed capital for 11 OECD countries, empirical evidence gives strong support for the model by suggesting that technological innovations indeed have only temporary effects on equity returns. Copyright 2006 The Authors. Journal compilation Royal Economic Society 2006

Economic growth · Economic history · Economics · Equity (law · Political science · Productivity · Economic Growth and Productivity · Fiscal Policy and Economic Growth · Law · Monetary Policy and Economic Impact

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Obras citantes distintas5
Citas por año0,29
Intervalo de citas2009 - 2019 (11)
Velocidad de citaciónhistorical
Altamente citadoNo
Tipos de citaNeutras: 5
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