Projects per year
Abstract
Increasing markups have recently gained prominence as a leading explanation for the increasing share of income going to capital since the 1980s. However, the existing analysis has been limited to the United States, covers only short periods, and generally does not control for potentially important confounders. Constructing data for the share of income going to capital and markups based on Tobin's q over the period 1870–2018 for 21 advanced countries, this research examines the ability of markups to explain the movements of income shares and the tendency for factor shares to converge toward constants in the long run. We find strong support for the markup hypothesis.
Original language | English |
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Pages (from-to) | 569-587 |
Number of pages | 19 |
Journal | Journal of Money, Credit and Banking |
Volume | 56 |
Issue number | 2-3 |
Early online date | 23 Mar 2023 |
DOIs | |
Publication status | Published - 1 Mar 2024 |
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Inequality, Trade, and Technology
Robertson, P. (Investigator 01) & Madsen, J. (Investigator 02)
ARC Australian Research Council
9/02/22 → 8/02/27
Project: Research
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Inequality and Economic Growth: Implications for Australia and the OECD
Madsen, J. (Investigator 01)
ARC Australian Research Council
1/01/19 → 31/12/21
Project: Research