Are Returns to Capital Hitting New Historic Highs?

John Tatom

MPRA Paper from University Library of Munich, Germany

Abstract: Some analysts believe that earnings of owners of capital are booming, setting new records. The basis of this view is that corporate profits, both before and after taxes, have been climbing in recent years as a percent of GDP. This has contributed to the view that workers are falling behind as the share of compensation declines, reflecting the rising share going to owners of corporate capital. The difficulty with this conclusion is that corporate profit is not the only payment to owners of capital. Interest, rent and profit of unincorporated business are also payments for the services of capital. This article discusses these components and their relevance to this belief.

Keywords: Income distribution; profitability; return to capital (search for similar items in EconPapers)
JEL-codes: E01 E25 (search for similar items in EconPapers)
Date: 2007-05-31
References: Add references at CitEc
Citations:

Published in Research Buzz 5.3(2007): pp. 1-3

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/17774/1/MPRA_paper_17774.pdf original version (application/pdf)

Related works:
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:pra:mprapa:17774

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().