This paper presents new evidence on the rate of return on tangible assets in the United" States, incorporating the recently-revised national accounts as well as new estimates of the" replacement cost of the reproducible physical capital stock. The pretax return on capital in the" nonfinancial...

This paper presents new evidence on the rate of return on tangible assets in the Unitedquot; States, incorporating the recently-revised national accounts as well as new estimates of thequot; replacement cost of the reproducible physical capital stock. The pretax return on capital in thequot;...

We investigate a general multiple security equilibrium model in which firms adjust their capital stock in response to economic shocks. Asset values are determined by competitive risk-averse investors. When corporate capital increases in value, firms react by creating more of it. This leads to...