|
|
Article: Technology and the Stock Market.
- Article from:
- NBER Reporter
- Article date:
- June 22, 2000
- Author:
CopyrightCOPYRIGHT 2000 National Bureau of Economic Research, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Boyan Jovanovic [*]
This article reviews my work on the relationship between technological change and the stock market. My co-authors in this area are Jeremy Greenwood, Bart Hobijn, and Peter L. Rousseau. The papers that we have written so far are listed at the end of this article.
Creative Destruction in the Stock Market
Figure 1 shows that U.S. stock market capitalization has risen relative to GNP by a factor of about 12 over a 113-year period. On the other hand, business debt -- bank loans and corporate bonds -- begins and ends the period at about 40 percent of GNP, which implies that the debt-equity ratio has fallen by a factor of 12.
...