Journal Article

The Rate of Return on Everything, 1870–2015

Authors

  • Òscar Jordà
  • Katharina Knoll
  • Dmitry Kuvshinov
  • Moritz Schularick
  • Alan M. Taylor
Publication Date

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 tendency for returns to fall in the long run? Which particular assets have the highest long-run returns? We answer these questions on the basis of a new and comprehensive data set for all major asset classes, including housing. The annual data on total returns for equity, housing, bonds, and bills cover 16 advanced economies from 1870 to 2015, and our new evidence reveals many new findings and puzzles.

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Info

JEL Classification
D31, E44, E10, G10, G12, N10
DOI
10.1093/qje/qjz012

Key Words

  • capital gains
  • dividends
  • household wealth
  • housing markets
  • Interest rates
  • rents
  • return on capital
  • risk premiums
  • yields