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horizontal and vertical innovation match financial data well due to countercyclical dividends which are either procyclical or … acyclical in US data. Countercyclical dividends redistribute income from consumption towards investment in innovation improving … growth prospects which are reflected in asset prices. In the horizontal innovation model of Kung and Schmid (2015 …
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There is a large body of literature stressing the importance of developing financial markets, including stock markets, to enhance countries' growth. I argue that the relationship between stock markets and growth is exaggerated and that the simple act of opening a formal stock market is not a...
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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,...
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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/10013247200