@TechReport{dp-574,
   author        = {Knolle, Julia and Lehmann, Kai},
   astring       = {Julia Knolle and Kai Lehmann},
   title         = {An Empirical Assessment of Global Capital Productivity},
   month         = {April},
   year          = {2016},
   pages         = {15},
   size          = {526},
   number        = {574},
   language      = {en},
   keywords      = {Capital productivity; cost of capital; interest-growth-differential;
WACC.},
   jelclass      = {D24, E22, E43},
   abstract      = {Does the world experience a secular decline in capital productivity? Due to the long-run downward trend in interest rates, some economists
do think so. However, this reasoning equates capital productivity with interest, which is a critical assumption. This paper presents a new proxy that can
be used to estimate capital productivity. It is based on weighted average cost
of capital (WACC), which are employed by firms in their investment appraisals as a benchmark return. The paper uses an original WACC data set
for many OECD countries and for the time period 2000-2015. Data are adjusted for tax distortions and expected inflation. The principle finding is that
the data do not indicate a long-run decline in capital productivity.
} }