The Stock Market and Capital Accumulation

Robert Hall ()

American Economic Review, 2001, vol. 91, issue 5, 1185-1202

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-codes: E44 G12 G32 (search for similar items in EconPapers)
Date: 2001
Note: DOI: 10.1257/aer.91.5.1185
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Citations: View citations in EconPapers (229)

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Journal Article: The stock market and capital accumulation (2000)
Working Paper: The Stock Market and Capital Accumulation (1999)
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