Growth, profits and R&D investment

Investment-Based Momentum Profits

We offer an investment-based explanation of momentum. The neoclassical theory of investment implies that expected stock returns are related to expected investment returns, defined as the next-period marginal benefits of investment divided by the current-period marginal costs of investment. Empirically, winners have higher expected growth of investment-to-capital and higher expected marginal pro...

Unionization and Economic Performance: Evidence on Productivity, Profits, Investment, and Growth

The effect of labor unions on economic performance is a crucial factor in evaluating public policy toward union organizing and bargaining rights. This paper evaluates theory and evidence on the relationship of unionization with respect to productivity, profitability, investment, and employment growth. The clear pattern that emerges from the research literature, primarily for the U.S. but also e...

The Present Value of Profits and Cyclical Movements in Investment

Most of the empirical work on investment is based on the existence of a relation between investment and the expected present val of marginal profits. Thus, in this paper we compute such a present value series, under various assumptions about demand and technology and examine its relation to investment. We find that variations in this present value series are, surprisingly, due more to variation...

Innovation , profits and growth : Schumpeter and

Profits and growth in the USA

Was America’s “new era” of faster productivity and profits growth a figment of fevered imaginations or a genuine advance? Our detailed examination gives grounds for cautious optimism about the longer term. Trend productivity growth could stay above 2% a year, as long as labour and product markets remain vigorously competitive. If so, trend company earnings could grow close to 3% a year in const...