Rate of Return on Everything, 1870–2015 *
Abstract. What is the aggregate real rate of return in the economy? Is it higher than the growth rate of the economy and, if so, by how much? Is there a tenden
Not only Marx obsessed about this question: what’s the long run rate of return on capital? Find out: our paper Rate of Return on Everything is out this month in the QJE. Bottom line: around 7% pa in real terms. And housing beats equities adjusted for risk.
"In peacetime, r has always been much greater than g"