EQUITY PRICES, PRODUCTIVITY GROWTH, AND ‘THE NEW ECONOMY’
Jakob Madsen and
E Davis ()
Public Policy Discussion Papers from Economics and Finance Section, School of Social Sciences, Brunel University
Abstract:
The increase in equity prices over the 1990s has to a large degree been attributed to permanently higher productivity growth that is derived from the ‘new economy’ and related research and development (R&D) expenditures. This paper 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 fundamentals of equity prices. Using data on R&D capital and fixed capital productivity for 11 OECD countries, the evidence give strong support for the model by suggesting that technology innovations indeed have only temporary effects on equity returns.
Pages: 31 pages
Date: 2003-02
New Economics Papers: this item is included in nep-eff and nep-fin
References: Add references at CitEc
Citations:
Downloads: (external link)
http://www.brunel.ac.uk/329/efwps/03-04.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.brunel.ac.uk/329/efwps/03-04.pdf [301 Moved Permanently]--> https://www.brunel.ac.uk/329/efwps/03-04.pdf)
Related works:
Journal Article: Equity Prices, Productivity Growth and 'The New Economy' (2006)
Working Paper: Equity Prices, Productivity Growth, and the 'New Economy' (2004) 
Working Paper: Equity Prices, Productivity Growth and 'The New Economy (2004) 
Working Paper: EQUITY PRICES, PRODUCTIVITY GROWTH, AND ‘THE NEW ECONOMY’ (2003) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:bru:bruppp:03-04
Access Statistics for this paper
More papers in Public Policy Discussion Papers from Economics and Finance Section, School of Social Sciences, Brunel University Brunel University, Uxbridge, Middlesex UB8 3PH, UK.
Bibliographic data for series maintained by John.Hunter ().