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Sydney C. Ludvigson

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Review Aug 2026

Capital Share Risk

This article surveys evidence on the evolution of the capital share—the portion of output accruing to firm owners as after-tax profits—and its contribution to asset prices, arguing that capital share risk is a dominant driver of equity values. Using aggregate data on the US corporate sector, we show that the capital sh...

D. Greenwald, Sydney C. Ludvigson · 0 citations

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