Date of Award
2012
Document Type
Thesis
Degree Name
Bachelors
Department
Social Sciences
First Advisor
Khemraj, Tarron
Keywords
Econometrics, Wage Share of GDP, Profit Share of GDP
Area of Concentration
Economics
Abstract
The purpose of this thesis is to provide an empirical examination of the wage share and profit share of Gross Domestic Product in the United States, as well as to shed light on future avenues for further research related to the topic. Comparisons of the shares are modeled as multivariate equations and estimated using Ordinary Least Squares in EViews 7.0. The determinants in each model are loosely categorized under four broad topics that reflect aspects of the federal government, the private sector, American workers and monetary policy. Final results show the profit share of the U.S. economy is significantly impacted by the Net Capital Rule change of 2004, the Subprime Mortgage Crisis, Republican Presidents, growth in the cost of a barrel of oil, the lagged profit share, and the effect Federal Funds Rate. The wage share model finds the Net Capital Rule change of 2004, Republican Presidents, unemployment rate, corporate cash flow share and lagged wage share to be significant.
Recommended Citation
Keenan, Rebecca Ryan, "Changing Slices of a Growing Pie The Decline of the Wage Share and Rise of the Profit Share in U.S. GDP" (2012). Theses & ETDs. 4616.
https://digitalcommons.ncf.edu/theses_etds/4616
Rights
This bibliographic record is available under the Creative Commons CC0 public domain dedication. The New College of Florida, as creator of this bibliographic record, has waived all rights to it worldwide under copyright law, including all related and neighboring rights, to the extent allowed by law.