Has the stock market become less representative of the economy? [electronic resource] / Frederik P. Schlingemann, René M. Stulz.

Cambridge, Massachusetts : National Bureau of Economic Research, 2020.©2020

Schlingemann, Frederik P. author.

National Bureau of Economic Research. issuing body.

01-01-2020

1 online resource.

text

online resource

NBER working paper series ; no. w27942

Working paper series (National Bureau of Economic Research) ; no. w27942.

WEB (Copy 1) INTERNET 1265698-1001 ONLINE

Open item 

Public companies

Gross domestic product

Economic impact

Overseas item

"October 2020"

Includes bibliographical references.

The firms listed on the stock market in aggregate as well as the top market capitalization firm contribute less to total non-farm employment and GDP now than in the 1970s. A major reason for this development is the decline of manufacturing and the growth of the service economy as firms providing services are less likely to be listed on exchanges. We develop quantitative measures of representativeness showing how firms' market capitalizations differ from their contribution to employment and GDP. Representativeness is worst when the market is most highly valued and worsens over time for employment, but not for value added.

1265698

1265698-1001

Library Catalogue