Shareholder Capitalism: Rising Market Concentration, Slower Productivity Growth, Rising Inequality, Rising Profits, and Rising Equities Markets
Public traded companies are always under pressure to show earnings growth and sales revenue growth to enhance shareholder value.
How do they do it when markets have matured and economy has slowed?
- Lower Costs
- Increase Market Share
- Find New Markets
- Diversify
- Create New products and services
How do then companies lower their costs?
- Vertical Mergers and Acquisitions
- Outsourcing (Sourcing parts and components / Intermediate Goods / Inputs from cross border)
- Offshoring (Shifting Production cross border)
- Vertical Integration
How do then companies increase their market share?
- Horizontal Mergers and Acquisitions
- Cross Border Markets Share (Sales in other countries)
In the last thirty years, this is exactly what has happened in US economy.
Macro Trends of increase in Outsourcing/Offshoring, Increase in Market Concentration, Increase in Inequality, Increase in Corporate Profits, Rising Equity Prices, Slower Productivity Growth, Lower Interest Rates, Low Labor Share, and Capital Share.
Please see my other posts expanding on these issues.
Please note that these forces are continuing and trends will remain on current trajectory.
Key Terms:
- Stakeholder vs Shareholder Capitalism
- Short Termism
- Slow Productivity Growth
- Rising Market Concentration
- Rising Profits
- Rising Equities Market
- Rising Inequality
- Dupont Ratio Analysis
- Financial Planning (Micro – Firm Level)
- Economic Planning (Macro- Aggregate Level)
- Quarterly Capitalism
From SHAREHOLDER CAPITALISM: A SYSTEM IN CRISIS
Our current, highly financialised, form of shareholder capitalism is not just failing to provide new capital for investment, it is actively undermining the ability of listed companies to reinvest their own profits. The stock market has become a vehicle for extracting value from companies, not for injecting it.
No wonder that Andy Haldane, Chief Economist of the Bank of England, recently suggested that shareholder capitalism is ‘eating itself.’1 Corporate governance has become dominated by the need to maximise short-term shareholder returns. At the same time, financial markets have grown more complex, highly intermediated, and similarly shorttermist, with shares increasingly seen as paper assets to be traded rather than long term investments in sound businesses.
This kind of trading is a zero-sum game with no new wealth, let alone social value, created. For one person to win, another must lose – and increasingly, the only real winners appear to be the army of financial intermediaries who control and perpetuate the merry-goround. There is nothing natural or inevitable about the shareholder-owned corporation as it currently exists. Like all economic institutions, it is a product of political and economic choices which can and should be remade if they no longer serve our economy, society, or environment.
Here’s the impact this shareholder model is currently having:
• Economy: Shareholder capitalism is holding back productive investment. Even the Chief Executive of BlackRock, the world’s largest asset manager, has admitted that pressure to keep the share price high means corporate leaders are ‘underinvesting in innovation, skilled workforces or essential capital expenditures.’ 2
• Society: Shareholder capitalism is driving inequality. There is growing evidence that attempts to align executive pay with shareholder value are largely responsible for the ballooning of salaries at the top. The prioritisation of shareholder interests has also contributed to a dramatic decline in UK wages relative to profits, helping to explain the failure of ordinary people’s living standards to rise in line with economic growth.
• Environment: Shareholder capitalism helps to drive environmental destruction. It does this by driving risky shortterm behaviour, such as fossil fuel extraction, which ignores long-term environmental risks.The idea that shareholder capitalism is the most efficient way to mobilise large amounts of capital is no longer tenable.
We need both to create new models of companies, and implement new ways of organising investment that are fit for building an inclusive, equal, and sustainable economy.
Companies should be explicitly accountable to a mission and a set of interests beyond shareholder returns. Equally, investment must provide long-term capital for socially and environmentally useful projects, and damaging forms of speculation must be restricted.
For most people, our economy simply is not working, and the damaging aspects of shareholder capitalism are at least in part responsible. Reforming shareholder capitalism must not be dismissed as too difficult – the crisis is too urgent for that. We can take the first steps towards a better economic model right now. It’s time to act.
A Crash Course in Dupont Financial Ratio Analysis
- What happens when economic growth slows ?
- What happens when profit margins decline ?
- What happens when Sales growth is limited ?
- What does lead to Mergers and Acquisitions ?
- What is the impact of Cost of Capital ?
- What is EVA (Economic Value Added) ?
- What is impact of Outsourcing/Offshoring on Financial Ratios ?
- What is impact of Mergers and Acquisitions on Financial Ratios ?
- What is impact of Stock Buy Backs on Financial Ratios ?
- What is impact of Dividends on Financial Ratios ?
- ROS (Return on Sales)
- ROE (Return on Equities)
- ROA (Return on Assets)
- ROIC (Return on Invested Capital)
- EVA (Economic Value Added)
- MVA (Market Value Added)
From The DuPont Equation, ROE, ROA, and Growth
The DuPont Equation
The DuPont equation is an expression which breaks return on equity down into three parts: profit margin, asset turnover, and leverage.
Learning Objectives
Explain why splitting the return on equity calculation into its component parts may be helpful to an analyst
Key Takeaways
Key Points
- By splitting ROE into three parts, companies can more easily understand changes in their returns on equity over time.
- As profit margin increases, every sale will bring more money to a company’s bottom line, resulting in a higher overall return on equity.
- As asset turnover increases, a company will generate more sales per asset owned, resulting in a higher overall return on equity.
- Increased financial leverage will also lead to an increase in return on equity, since using more debt financing brings on higher interest payments, which are tax deductible.
Key Terms
- competitive advantage: something that places a company or a person above the competition
The DuPont Equation
The DuPont equation is an expression which breaks return on equity down into three parts. The name comes from the DuPont Corporation, which created and implemented this formula into their business operations in the 1920s. This formula is known by many other names, including DuPont analysis, DuPont identity, the DuPont model, the DuPont method, or the strategic profit model.
The DuPont Equation: In the DuPont equation, ROE is equal to profit margin multiplied by asset turnover multiplied by financial leverage.
Under DuPont analysis, return on equity is equal to the profit margin multiplied by asset turnover multiplied by financial leverage. By splitting ROE (return on equity) into three parts, companies can more easily understand changes in their ROE over time.
Components of the DuPont Equation: Profit Margin
Profit margin is a measure of profitability. It is an indicator of a company’s pricing strategies and how well the company controls costs. Profit margin is calculated by finding the net profit as a percentage of the total revenue. As one feature of the DuPont equation, if the profit margin of a company increases, every sale will bring more money to a company’s bottom line, resulting in a higher overall return on equity.
Components of the DuPont Equation: Asset Turnover
Asset turnover is a financial ratio that measures how efficiently a company uses its assets to generate sales revenue or sales income for the company. Companies with low profit margins tend to have high asset turnover, while those with high profit margins tend to have low asset turnover. Similar to profit margin, if asset turnover increases, a company will generate more sales per asset owned, once again resulting in a higher overall return on equity.
Components of the DuPont Equation: Financial Leverage
Financial leverage refers to the amount of debt that a company utilizes to finance its operations, as compared with the amount of equity that the company utilizes. As was the case with asset turnover and profit margin, Increased financial leverage will also lead to an increase in return on equity. This is because the increased use of debt as financing will cause a company to have higher interest payments, which are tax deductible. Because dividend payments are not tax deductible, maintaining a high proportion of debt in a company’s capital structure leads to a higher return on equity.
The DuPont Equation in Relation to Industries
The DuPont equation is less useful for some industries, that do not use certain concepts or for which the concepts are less meaningful. On the other hand, some industries may rely on a single factor of the DuPont equation more than others. Thus, the equation allows analysts to determine which of the factors is dominant in relation to a company’s return on equity. For example, certain types of high turnover industries, such as retail stores, may have very low profit margins on sales and relatively low financial leverage. In industries such as these, the measure of asset turnover is much more important.
High margin industries, on the other hand, such as fashion, may derive a substantial portion of their competitive advantage from selling at a higher margin. For high end fashion and other luxury brands, increasing sales without sacrificing margin may be critical. Finally, some industries, such as those in the financial sector, chiefly rely on high leverage to generate an acceptable return on equity. While a high level of leverage could be seen as too risky from some perspectives, DuPont analysis enables third parties to compare that leverage with other financial elements that can determine a company’s return on equity.
ROE and Potential Limitations
Return on equity measures the rate of return on the ownership interest of a business and is irrelevant if earnings are not reinvested or distributed.
Learning Objectives
Calculate a company’s return on equity
Key Takeaways
Key Points
- Return on equity is an indication of how well a company uses investment funds to generate earnings growth.
- Returns on equity between 15% and 20% are generally considered to be acceptable.
- Return on equity is equal to net income (after preferred stock dividends but before common stock dividends) divided by total shareholder equity (excluding preferred shares ).
- Stock prices are most strongly determined by earnings per share (EPS) as opposed to return on equity.
Key Terms
- fundamental analysis: An analysis of a business with the goal of financial projections in terms of income statement, financial statements and health, management and competitive advantages, and competitors and markets.
Return On Equity
Return on equity (ROE) measures the rate of return on the ownership interest or shareholders’ equity of the common stock owners. It is a measure of a company’s efficiency at generating profits using the shareholders’ stake of equity in the business. In other words, return on equity is an indication of how well a company uses investment funds to generate earnings growth. It is also commonly used as a target for executive compensation, since ratios such as ROE tend to give management an incentive to perform better. Returns on equity between 15% and 20% are generally considered to be acceptable.
The Formula
Return on equity is equal to net income, after preferred stock dividends but before common stock dividends, divided by total shareholder equity and excluding preferred shares.
Return On Equity: ROE is equal to after-tax net income divided by total shareholder equity.
Expressed as a percentage, return on equity is best used to compare companies in the same industry. The decomposition of return on equity into its various factors presents various ratios useful to companies in fundamental analysis.
ROE Broken Down: This is an expression of return on equity decomposed into its various factors.
The practice of decomposing return on equity is sometimes referred to as the “DuPont System. ”
Potential Limitations of ROE
Just because a high return on equity is calculated does not mean that a company will see immediate benefits. Stock prices are most strongly determined by earnings per share (EPS) as opposed to return on equity. Earnings per share is the amount of earnings per each outstanding share of a company’s stock. EPS is equal to profit divided by the weighted average of common shares.
Earnings Per Share: EPS is equal to profit divided by the weighted average of common shares.
The true benefit of a high return on equity comes from a company’s earnings being reinvested into the business or distributed as a dividend. In fact, return on equity is presumably irrelevant if earnings are not reinvested or distributed.
Assessing Internal Growth and Sustainability
Sustainable– as opposed to internal– growth gives a company a better idea of its growth rate while keeping in line with financial policy.
Learning Objectives
Calculate a company’s internal growth and sustainability ratios
Key Takeaways
Key Points
- The internal growth rate is a formula for calculating the maximum growth rate a firm can achieve without resorting to external financing.
- Sustainable growth is defined as the annual percentage of increase in sales that is consistent with a defined financial policy.
- Another measure of growth, the optimal growth rate, assesses sustainable growth from a total shareholder return creation and profitability perspective, independent of a given financial strategy.
Key Terms
- retention: The act of retaining; something retained
- retention ratio: retained earnings divided by net income
- sustainable growth rate: the optimal growth from a financial perspective assuming a given strategy with clear defined financial frame conditions/ limitations
Internal Growth and Sustainability
The true benefit of a high return on equity arises when retained earnings are reinvested into the company’s operations. Such reinvestment should, in turn, lead to a high rate of growth for the company. The internal growth rate is a formula for calculating maximum growth rate that a firm can achieve without resorting to external financing. It’s essentially the growth that a firm can supply by reinvesting its earnings. This can be described as (retained earnings)/(total assets ), or conceptually as the total amount of internal capital available compared to the current size of the organization.
We find the internal growth rate by dividing net income by the amount of total assets (or finding return on assets ) and subtracting the rate of earnings retention. However, growth is not necessarily favorable. Expansion may strain managers’ capacity to monitor and handle the company’s operations. Therefore, a more commonly used measure is the sustainable growth rate.
Sustainable growth is defined as the annual percentage of increase in sales that is consistent with a defined financial policy, such as target debt to equity ratio, target dividend payout ratio, target profit margin, or target ratio of total assets to net sales.
We find the sustainable growth rate by dividing net income by shareholder equity (or finding return on equity) and subtracting the rate of earnings retention. While the internal growth rate assumes no financing, the sustainable growth rate assumes you will make some use of outside financing that will be consistent with whatever financial policy being followed. In fact, in order to achieve a higher growth rate, the company would have to invest more equity capital, increase its financial leverage, or increase the target profit margin.
Optimal Growth Rate
Another measure of growth, the optimal growth rate, assesses sustainable growth from a total shareholder return creation and profitability perspective, independent of a given financial strategy. The concept of optimal growth rate was originally studied by Martin Handschuh, Hannes Lösch, and Björn Heyden. Their study was based on assessments on the performance of more than 3,500 stock-listed companies with an initial revenue of greater than 250 million Euro globally, across industries, over a period of 12 years from 1997 to 2009.
Due to the span of time included in the study, the authors considered their findings to be, for the most part, independent of specific economic cycles. The study found that return on assets, return on sales and return on equity do in fact rise with increasing revenue growth of between 10% to 25%, and then fall with further increasing revenue growth rates. Furthermore, the authors attributed this profitability increase to the following facts:
- Companies with substantial profitability have the opportunity to invest more in additional growth, and
- Substantial growth may be a driver for additional profitability, whether by attracting high performing young professionals, providing motivation for current employees, attracting better business partners, or simply leading to more self-confidence.
However, according to the study, growth rates beyond the “profitability maximum” rate could bring about circumstances that reduce overall profitability because of the efforts necessary to handle additional growth (i.e., integrating new staff, controlling quality, etc).
Dividend Payments and Earnings Retention
The dividend payout and retention ratios offer insight into how much of a firm’s profit is distributed to shareholders versus retained.
Learning Objectives
Calculate a company’s dividend payout and retention ratios
Key Takeaways
Key Points
- Many corporations retain a portion of their earnings and pay the remainder as a dividend.
- Dividends are usually paid in the form of cash, store credits, or shares in the company.
- Cash dividends are a form of investment income and are usually taxable to the recipient in the year that they are paid.
- Dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends.
- Retained earnings can be expressed in the retention ratio.
Key Terms
- stock split: To issue a higher number of new shares to replace old shares. This effectively increases the number of shares outstanding without changing the market capitalization of the company.
Dividend Payments and Earnings Retention
Dividends are payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders. On the other hand, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings. Many corporations retain a portion of their earnings and pay the remainder as a dividend.
A dividend is allocated as a fixed amount per share. Therefore, a shareholder receives a dividend in proportion to their shareholding. Retained earnings are shown in the shareholder equity section in the company’s balance sheet –the same as its issued share capital.
Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes called a “special dividend” to distinguish it from the fixed schedule dividends. Dividends are usually paid in the form of cash, store credits (common among retail consumers’ cooperatives), or shares in the company (either newly created shares or existing shares bought in the market). Further, many public companies offer dividend reinvestment plans, which automatically use the cash dividend to purchase additional shares for the shareholder.
Cash dividends (most common) are those paid out in currency, usually via electronic funds transfer or a printed paper check. Such dividends are a form of investment income and are usually taxable to the recipient in the year they are paid. This is the most common method of sharing corporate profits with the shareholders of the company. For each share owned, a declared amount of money is distributed. Thus, if a person owns 100 shares and the cash dividend is $0.50 per share, the holder of the stock will be paid $50. Dividends paid are not classified as an expense but rather a deduction of retained earnings. Dividends paid do not show up on an income statement but do appear on the balance sheet.
Stock dividends are those paid out in the form of additional stock shares of the issuing corporation or another corporation (such as its subsidiary corporation). They are usually issued in proportion to shares owned (for example, for every 100 shares of stock owned, a 5% stock dividend will yield five extra shares). If the payment involves the issue of new shares, it is similar to a stock split in that it increases the total number of shares while lowering the price of each share without changing the market capitalization, or total value, of the shares held.
Dividend Payout and Retention Ratios
Dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends:
The part of the earnings not paid to investors is left for investment to provide for future earnings growth. These retained earnings can be expressed in the retention ratio. Retention ratio can be found by subtracting the dividend payout ratio from one, or by dividing retained earnings by net income.
Dividend Payout Ratio: The dividend payout ratio is equal to dividend payments divided by net income for the same period.
Relationships between ROA, ROE, and Growth
Return on assets is a component of return on equity, both of which can be used to calculate a company’s rate of growth.
Learning Objectives
Discuss the different uses of the Return on Assets and Return on Assets ratios
Key Takeaways
Key Points
- Return on equity measures the rate of return on the shareholders ‘ equity of common stockholders.
- Return on assets shows how profitable a company’s assets are in generating revenue.
- In other words, return on assets makes up two-thirds of the DuPont equation measuring return on equity.
- Capital intensity is the term for the amount of fixed or real capital present in relation to other factors of production. Rising capital intensity pushes up the productivity of labor.
Key Terms
- return on common stockholders’ equity: a fiscal year’s net income (after preferred stock dividends but before common stock dividends) divided by total equity (excluding preferred shares), expressed as a percentage
- quantitatively: With respect to quantity rather than quality.
Return On Assets Versus Return On Equity
In review, return on equity measures the rate of return on the ownership interest (shareholders’ equity) of common stockholders. Therefore, it shows how well a company uses investment funds to generate earnings growth. Return on assets shows how profitable a company’s assets are in generating revenue. Return on assets is equal to net income divided by total assets.
Return On Assets: Return on assets is equal to net income divided by total assets.
This percentage shows what the company can do with what it has (i.e., how many dollars of earnings they derive from each dollar of assets they control). This is in contrast to return on equity, which measures a firm’s efficiency at generating profits from every unit of shareholders’ equity. Return on assets is, however, a vital component of return on equity, being an indicator of how profitable a company is before leverage is considered. In other words, return on assets makes up two-thirds of the DuPont equation measuring return on equity.
ROA, ROE, and Growth
In terms of growth rates, we use the value known as return on assets to determine a company’s internal growth rate. This is the maximum growth rate a firm can achieve without resorting to external financing. We use the value for return on equity, however, in determining a company’s sustainable growth rate, which is the maximum growth rate a firm can achieve without issuing new equity or changing its debt-to-equity ratio.
Capital Intensity and Growth
Return on assets gives us an indication of the capital intensity of the company. “Capital intensity” is the term for the amount of fixed or real capital present in relation to other factors of production, especially labor. The underlying concept here is how much output can be procured from a given input (assets!). The formula for capital intensity is below:
Capital Intensity=Total AssetsSalesThe use of tools and machinery makes labor more effective, so rising capital intensity pushes up the productivity of labor. While companies that require large initial investments will generally have lower return on assets, it is possible that increased productivity will provide a higher growth rate for the company. Capital intensity can be stated quantitatively as the ratio of the total money value of capital equipment to the total potential output. However, when we adjust capital intensity for real market situations, such as the discounting of future cash flows, we find that it is not independent of the distribution of income. In other words, changes in the retention or dividend payout ratios can lead to changes in measured capital intensity.
Please see my related posts:
Rising Market Concentration and Declining Business Investments in the USA – Update June 2018
Why do Firms buyback their Shares? Causes and Consequences.
FDI vs Outsourcing: Extending Boundaries or Extending Network Chains of Firms
Trading Down: NAFTA, TPP, TATIP and Economic Globalization
On Inequality of Wealth and Income – Causes and Consequences
Rising Profits, Rising Inequality, and Rising Industry Concentration in the USA
Low Interest Rates and Business Investments : Update August 2017
Low Interest Rates and Monetary Policy Effectiveness
Low Interest Rates and Banks’ Profitability : Update July 2017
Short term Thinking in Investment Decisions of Businesses and Financial Markets
Mergers and Acquisitions – Long Term Trends and Waves
Business Investments and Low Interest Rates
The Decline in Long Term Real Interest Rates
Low Interest Rates and Banks Profitability: Update – December 2016
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In today’s economy, many industries can’t be analyzed through the lens of competition.
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Is There an Investment Gap in Advanced Economies? If So, Why?
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Antitrust in a Time of Populism
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The Causes and Consequences of Fewer U.S. Equities
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https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3095586
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Development Issues No. 11
UN
April 2017
Click to access dsp_policy_11.pdf
Five Puzzles in the Behavior of Productivity, Investment, and Innovation
Robert J. Gordon
NBER
August 2004
http://www.nber.org/papers/w10660
AN OECD AGENDA ON ISSUES IN PRODUCTIVITY MEASUREMENT
Paul Schreyer
OECD Statistics Directorate
2016 World KLEMS Conference
Madrid, May 23-24 2016
Click to access worldklems2016_Schreyer_slides.pdf
THE FUTURE OF PRODUCTIVITY
Chiara Criscuolo
Directorate for Science, Technology and Innovation OECD
Understanding the Great recession: from micro to macro
Bank of England
London | 24 September 2015
Click to access CCriscuolo.pdf
Industry 4.0
The future of Productivity and Growth in Manufacturing Industries
BCG
Click to access media.media.72e472fb-1698-4a15-8858-344351c8902f.original.pdf
The waning of productivity growth
Raymond Van der Putten
http://economic-research.bnpparibas.com/Views/DisplayPublication.aspx?type=document&IdPdf=29178
The Impact of Robots on Productivity, Employment and Jobs
A positioning paper by the International Federation of Robotics
April 2017
Click to access IFR_The_Impact_of_Robots_on_Employment.pdf
The fall in productivity growth: causes and implications
Speech given by Silvana Tenreyro, External MPC Member, Bank of England
Peston Lecture Theatre, Queen Mary University of London
15 January 2018
Artificial Intelligence, Automation, and the Economy
Science and Technology Council
Executive Office of the President
December 2016
Click to access EMBARGOED%20AI%20Economy%20Report.pdf
Long-term growth and productivity projections in advanced countries
Gilbert Cette, Rémy Lecat & Carole Ly-Marin
Working Paper #617
December 2016
Bank of France
ARE WE APPROACHING AN ECONOMIC SINGULARITY?
INFORMATION TECHNOLOGY AND THE FUTURE OF ECONOMIC GROWTH
By
William D. Nordhaus
September 2015
Challenges for the Future of Chinese Economic Growth
Jane Haltmaier
Federal Reseve Bank USA
2013
Innovation, research and the UK’s productivity crisis.
Richard Jones
SPERI Paper No. 28
Click to access SPERI-Paper-28-Innovation-research-and-the-UK-productivity-crisis.pdf
Think Like an Enterprise: Why Nations Need Comprehensive Productivity Strategies
BY ROBERT D. ATKINSON
MAY 2016
Click to access 2016-think-like-an-enterprise.pdf
Solving the productivity puzzle
McKinsey
Feb 2018
Solving the productivity puzzle: the role of demand and the promise of digitization
DR. JAN MISCHKE
McKinsey Global Institute
May 2018
Click to access 20180523-MGI_Solving-the-productivity-puzzle_Bruegel.pdf
Worried about Concentration? Then Worry about Rent-Seeking
Online platforms, distortion of markets, social impacts and freedom of expression
Oxford Centre for Competition law and policy
22 May 2017
Tim Cowen.
What’s Behind the Increase in Inequality?
By Eileen Appelbaum*
September 2017
Click to access whats-behind-the-increase-in-inequality-2017-09.pdf
A NATIONAL COMPETITION POLICY: UNPACKING THE PROBLEM OF DECLINING COMPETITION AND SETTING PRIORITIES MOVING FORWARD
American Antitrust Institute
September 28, 2016
Click to access AAINatlCompPolicy.pdf
AI and the Economy
Jason Furman
Harvard Kennedy School
Cambridge, MA
Robert Seamans
NYU Stern School of Business
New York, NY
29 May 2018
The United States and Europe: Short-Run Divergence and Long-Run Challenges
Jason Furman
Chairman, Council of Economic Advisers
Remarks at Bruegel
Brussels, Belgium
May 11, 2016
Business Investment Spending Slowdown
April 9, 2018
Marc Labonte
CRS Insights
ECONOMIC REPORT OF THE PRESIDENT
Together With
THE ANNUAL REPORT
of the
COUNCIL OF ECONOMIC ADVISERS
Feb 2016
Keynote Remarks of Commissioner Terrell McSweeny
Washington Center for Equitable Growth
Making Antitrust Work for the 21st Century
Washington, DC
October 6, 2016
Click to access mcsweeny_-_keynote_remarks_at_equitable_growth_10-6-16.pdf
Wal-Mart: A Progressive Success Story
Jason Furman
November 28, 2005
“America Without Entrepreneurs: The Consequences of Dwindling Startup Activity”
Testimony before
The Committee on Small Business and Entrepreneurship
United States Senate
June 29, 2016
John W. Lettieri
Cofounder
& Senior Director for Policy and Strategy
Economic Innovation Group
Click to access 7F75741C1A2E6182E1A5D21B61D278F3.lettieri-testimony.pdf
A reading list on market power, superstar firms, and inequality
BLOG
Productivity Growth in the Advanced Economies:The Past, the Present, and Lessons for the Futures
Jason Furman
Chairman, Council of Economic Advisers
July 2015
Click to access 20150709_productivity_advanced_economies_piie_slides.pdf
Forms and sources of inequality in the United States
Jason Furman
17 March 2016
VOXEU
https://voxeu.org/article/forms-and-sources-inequality-united-states
Business Investment in the United States: Facts, Explanations, Puzzles, and Policies
Jason Furman
Chairman, Council of Economic Advisers
Progressive Policy Ins9tute
September 30, 2015
Can Tax Reform Get Us to 3 Percent Growth?
Jason Furman
Harvard Kennedy School & Peterson Institute for International Economics
New York, NY
November 3, 2017
Click to access furman20171103ppt.pdf
Structural Challenges and Opportunities in the U.S. Economy
Jason Furman
Chairman, Council of Economic Advisers
London School of Economics
November 5, 2014
Click to access 20141105_1830_structuralOpportunitiesUSEconomy_tr.pdf
Is This Time Different? The Opportunities and Challenges of Artificial Intelligence
Jason Furman
Chairman, Council of Economic Advisers
Remarks at AI Now: The Social and Economic Implications of Artificial Intelligence Technologies in the Near Term
New York University
New York, NY
July 7, 2016
Click to access 20160707_cea_ai_furman.pdf
Rebalancing the U.S. Economy
Jason Furman
Click to access TIE_Sp15_Furman.pdf
Should Policymakers Care Whether Inequality Is Helpful or Harmful For Growth?
Jason Furman
Harvard Kennedy School & Peterson Institute for International Economics
Rethinking Macroeconomic Conference, October 11-12 2017
Preliminary Draft: October 5, 2017
Click to access furman20171012paper.pdf
A Political Economy of Oligarchy: Winner-take-all ideology, superstar norms, and the rise of the 1%
Yochai Benkler
September, 2017
Click to access Political%20economy%20of%20oligarchy%2001.pdf
Can Trump Overcome Secular Stagnation?
Part One: The Demand Side *
James K. Galbraith
Click to access can_trump_overcome_secular_stagnation.pdf
The macroeconomic effects of the 2017 tax reform
Robert J. Barro, Harvard University
Jason Furman, Harvard University
March 2018
Click to access 4_barrofurman.pdf
A FUTURE THAT WORKS: AUTOMATION, EMPLOYMENT, AND PRODUCTIVITY
McKinsey Global Institute
January 2017
A MISSING LINK: THE ROLE OF ANTITRUST LAW IN RECTIFYING EMPLOYER POWER IN OUR HIGH-PROFIT, LOW-WAGE ECONOMY
ISSUE BRIEF BY MARSHALL STEINBAUM
APRIL 2018
Click to access Monopsony-issue-brief.pdf
Inclusive Growth
For once, some good news
by jason furman
Click to access 16-29-MR64.pdf
The Outlook for the U.S. Economy and the Policies of the New President
Jason Furman
Senior Fellow, PIIE
Peterson Institute for International Economics |
SNS/SHOF Finance Panel
Stockholm
June 12, 2017
Click to access furman20170612ppt.pdf
The Role of Economists in Economic Policymaking
Jason Furman
Senior Fellow, Peterson Institute for International Economics
Arnold C. Harberger Distinguished Lecture on Economic Development
UCLA Burkle Center for International Relations
Los Angeles, CA
April 27, 2017
Click to access furman20170427.pdf
Market Concentration – Note by the United States
Hearing on Market Concentration
7 June 2018
OECD
Click to access market_concentration_united_states.pdf
The fringe economic theory that might get traction in the 2016 campaign
ACHIEVING INCLUSIVE GROWTH IN THE FACE OF DIGITAL TRANSFORMATION AND THE FUTURE OF WORK
OECD