Eeckhout, Jan - In: Journal of the European Economic Association : JEEA 23 (2025) 1, pp. 52-118
The real growth of the stock market value of firms has increased from close to 0% on average per year between 1958 and 1980, to 5.2% between 1980 and today. This change coincides with the rise of market power and profits, starting in 1980. This paper proposes to decompose the value of firms...