Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/176918 
Year of Publication: 
2018
Series/Report no.: 
CESifo Working Paper No. 6899
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
This paper answers fundamental questions that have preoccupied modern economic thought since the 18th century. 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 dataset for all major asset classes, including—for the first time—total returns to the largest, but oft ignored, component of household wealth, 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 insights and puzzles.
Subjects: 
return on capital
interest rates
yields
dividends
rents
capital gains
risk premiums
household wealth
housing markets
JEL: 
D31
E44
E10
G10
G12
N10
Document Type: 
Working Paper
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