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The Stock Market and Capital Accumulation

Hall, Robert E. - 1999

If firms purchase capital up to the point where there is no further marginal benefit, and the firms' securities are equal in value to the capital, then the market value of securities measures the quantity of capital. I explore the implications of this hypothesis using data from U.S. non-farm,...

Persistent link: https://www.econbiz.de/10012471608

Technology Innovation and Diffusion as Sources of Output and Asset Price Fluctuations

Comin, Diego A. - 2009

We develop a model in which innovations in an economy's growth potential are an important driving force of the business cycle. The framework shares the emphasis of the recent "new shock" literature on revisions of beliefs about the future as a source of fluctuations, but differs by tieing these...

Persistent link: https://www.econbiz.de/10012463620

Innovation and Market Value

Hall, Bronwyn H. - 1999

Recent research on financial market valuation of the knowledge assets of publicly traded firms is surveyed. The motivation for using a market value equation to price knowledge assets is discussed and the theory behind this equation is briefly presented. Then the empirical literature that relates...

Persistent link: https://www.econbiz.de/10012471824

Bubbles and the Value of Innovation

Haddad, Valentin; Ho, Paul; Loualiche, Erik - National Bureau of Economic Research - 2022

Booming innovation often coincides with intense speculation in financial markets. Using over a million patents, we … document two ways the market valuation of innovation and its economic impact become disconnected during bubbles. Specifically …, an innovation raises the stock price of its creator by 40% more than is justified by future outcomes. In contrast …

Persistent link: https://www.econbiz.de/10013191012

Dividend Innovations and Stock Price Volatility

West, Kenneth D. - 1986

hypothesis is true, the variance of the innovation in the stock price is bounded above by a certain function of the variance in … the innovation in the dividend. The bound is valid even if prices and dividends are nonstationary.The inequality is used … stock price innovation variance exceeding its theoretical upper bound by a factor of as much as twenty. The rejection is …

Persistent link: https://www.econbiz.de/10012477243

Technological Revolutions and Stock Prices

Pastor, Lubos - 2005

We develop a general equilibrium model in which stock prices of innovative firms exhibit "bubbles" during technological revolutions. In the model, the average productivity of a new technology is uncertain and subject to learning. During technological revolutions, the nature of this uncertainty...

Persistent link: https://www.econbiz.de/10012466795