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Higher profits and lower capital prices: is factor allocation optimal?

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  • E. Yndgaard
  • Palle S. Andersen
  • Marc Klau

Abstract

From an international perspective, the European rate of unemployment has been high and growing over the last one to two decades; against this background, the parallel rise in profit shares in a number of European countries seems to be at odds with expected economic behaviour.

Suggested Citation

  • E. Yndgaard & Palle S. Andersen & Marc Klau, 1999. "Higher profits and lower capital prices: is factor allocation optimal?," BIS Working Papers 65, Bank for International Settlements.
    • Handle: RePEc:bis:biswps:65
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    References listed on IDEAS

    as
    1. Lynn E. Browne & Rebecca Hellerstein, 1997. "Are we investing too little?," New England Economic Review, Federal Reserve Bank of Boston, issue Nov, pages 29-50.
    2. Milka Kirova & Robert E. Lipsey, 1997. "Does the United States invest \"too little?\"," Working Papers 1997-020, Federal Reserve Bank of St. Louis.
    3. Michael Bruno & Jeffrey D. Sachs, 1985. "Economics of Worldwide Stagflation," NBER Books, National Bureau of Economic Research, Inc, number brun85-1, March.
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    Citations

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    Cited by:

    1. Engelbert Stockhammer, 2004. "Is there an equilibrium rate of unemployment in the long run?," Review of Political Economy, Taylor & Francis Journals, vol. 16(1), pages 59-77.
    2. Kaas Leo & Thadden Leopold von, 2003. "Unemployment, Factor Substitution and Capital Formation," German Economic Review, De Gruyter, vol. 4(4), pages 475-495, December.
    3. Luci Ellis & Kathryn Smith, 2010. "The Global Upward Trend in the Profit Share," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 56(3), pages 231-256.
    4. Kazumasa Iwata, 2010. "Luncheon speech at the BIS Conference in Honour of Palle S Andersen," BIS Papers chapters, in: Bank for International Settlements (ed.), Globalisation, labour markets and international adjustment - Essays in honour of Palle S Andersen, volume 50, pages 5-9, Bank for International Settlements.
    5. Engelbert Stockhammer, 2004. "Explaining European Unemployment: Testing the NAIRU Hypothesis and a Keynesian Approach," International Review of Applied Economics, Taylor & Francis Journals, vol. 18(1), pages 1-26.
    6. Leo Kaas & Leopold von Thadden, 2003. "Unemployment, Factor Substitution and Capital Formation," German Economic Review, Verein für Socialpolitik, vol. 4, pages 475-495, November.
    7. Declan Trott, 2013. "Why Has Wage Inequality Risen Most Where Wage Shares Have Fallen Least?," CEPR Discussion Papers 685, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    8. Klump, Rainer & McAdam, Peter & Willman, Alpo, 2004. "Factor substitution and factor augmenting technical progress in the US: a normalized supply-side system approach," Working Paper Series 367, European Central Bank.

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