Vintage Organization Capital

Jovanovic, Boyan; Rousseau, Peter L.

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Vintage Organization Capital

NBER Working Paper No. w8166

33 Pages Posted: 16 Mar 2001 Last revised: 26 Oct 2022

See all articles by Boyan Jovanovic

Boyan Jovanovic

New York University - Department of Economics

Peter L. Rousseau

Vanderbilt University - Department of Economics

Date Written: March 2001

Abstract

We study 114 years of U.S. stock market data and find That there are large cohort effects in stock prices, effects that we label 'organization capital,' That cohort effects grew at a rate of 1.75% per year, That the debt-equity ratio of all vintages declined, That three big technological waves took place: electricity (1895-1930), a 'World War II' wave (1945-1970), and information technology (1971-), and That organization capital tends to grow fastest during the second half of a technological wave.

Suggested Citation: Suggested Citation

Jovanovic, Boyan and Rousseau, Peter L., Vintage Organization Capital (March 2001). NBER Working Paper No. w8166, Available at SSRN: https://ssrn.com/abstract=263428