Report
Patrick Artus

What accounts for the increase in market capitalisation in OECD countries?

From 1995 to the present, OECD countries’ market capitalisation has increased from 43% to 110% of GDP. We break down this increase in market capitalisation into its different components: The number of listed companies: it is stable; The gap between the long-term interest rate and the growth rate: it has fallen significantly, which is the dominant effect; The equity risk premium: it has risen sharply, which is negative; The increase in corporate profitability due to the skewing of income distribution against employees: it has increased .
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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Micaella Feldstein
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