In 'What Explains the Increasing Gap between Interest Rates and Return on Capital?' we seek to explain the decrease in interest rates given that the return on capital has not fallen as otherwise expected from an increase in savings supply. You may find the latest version of the paper and iPython files below.
- Jens Brink, Economics Student at University of Copenhagen
- Martin Nørgaard Petersen, Economics Student at University of Copenhagen
Supervisor: Jeppe Druedahl, Assistant Professor at University of Copenhagen
The full paper may be downloaded here:Download paper
Download iPython-files (analysis, graphs and data) here. Note that the zip-file contains ready set file-structure as well as seperate datafiles and Python file to generate the above data-file.Download iPython-files
Applied dataset may be downloaded here:Download data
iPython-files may be run in an online Binder here:Launch in Binder
The paper builds on research by Farhi and Gourio (2018) from their paper "Accounting for macro-finance trends: Market power, intangibles, and risk premia". Their MATLAB-files may be downloaded from François Gourio's website. Note that if receiving a data error when running their file, you may wish to run a semi-colon seperated copy of their CSV-file instead. You find such here.
Any questions may be directed via mail.Back