Essays on Investment and Capital in the MacroeconomyPublic Deposited
Both chapters of this dissertation relate to the aggregate value of corporations in an economy. In particular, they relate to the ratio of the aggregate total market value of corporations over the replacement cost of their recorded capital. The first chapter introduces a model that can explain why this ratio systematically averages below unity and why there are large cross-country differences in this ratio. The second chapter introduces a model that can explain the systematic upward trend in the ratio over the last three decades with increased business internationalization.