This study analyzes the long-term effects of financialization and financial development on investment and growth by using data of OECD countries since the 1970s. The panel cointegration approach is adopted to investigate the long-run effects of these variables. Estimation results show evidence...

Wage shares have fallen substantially over the past 25 years. In the Euro area the (adjusted) wage share declined by almost ten percentage points. Recently, there has been a renewed interest in the determinants of functional income distribution. IMF (2007a) and EC (2007) find that technological...