Gomme, Paul; Ravikumar, B.; Rupert, Peter - In: Review of Economic Dynamics 14 (2011) 2, pp. 262-278
?nancial variables. Perhaps less well known is the fact that the return to capital and equity are identical in the neoclassical … series variation in the S&P 500 return must fail to account for the time series properties of the return to capital. A fairly … basic real business cycle model captures most of the observed variability in the return to capital. What is needed is a …