Accounting for macro-finance trends: Market power, intangibles, and risk premia

Abstract Real risk-free interest rates have trended down over the past 30 years. Puzzlingly in light of this decline, (1) the return on private capital has remained stable or even increased, creating an increasing wedge between public and private rates of return; (2) stock market valuation ratios have increased only moderately; (3) investment has been … Continue reading Accounting for macro-finance trends: Market power, intangibles, and risk premia