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Rents, Technical Change, and Risk Premia: Accounting for Secular Trends in Interest Rates, Returns on Capital, Earning Yields, and Factor Shares / Ricardo J. Caballero, Emmanuel Farhi, Pierre-Olivier Gourinchas.
- Format:
- Book
- Author/Creator:
- Caballero, Ricardo J.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w23127.
- NBER working paper series no. w23127
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2017.
- Summary:
- The secular decline in safe interest rates since the early 1980s has been the subject of considerable attention. In this short paper, we argue that it is important to consider the evolution of safe real rates in conjunction with three other first-order macroeconomic stylized facts: the relative constancy of the real return to productive capital, the decline in the labor share, and the decline and subsequent stabilization of the earnings yield. Through the lens of a simple accounting framework, these four facts offer insights into the economic forces that might be at work.
- Notes:
- Print version record
- February 2017.
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