Are "firm specific resources" here including "human resources"? In some sense, the employees don't show up on the balance sheet. The famous quote "all of our most valuable assets go home every night" is indicative of the power the particular people a firm employees...
Following up on this, the intangibles discussed here are a minority of "dark matter". S&P capitalization exceed $15 trillion in 2013, so 80% of that is $12 trillion. 22% of 2012 nonfarm output of 22 trillion is $4.5 trillion. Since this estimate of intangibles seems pretty extensive, that suggests the majority of intangibles is unearned things like oligopoly power and speculative froth.
Is that chart consistent with the chart from your earlier column? It seems the earlier one showed a far more dramatic change, but the vertical axes were different. Comparing the two, it seems that intangibles went up moderately in terms of the percentage of "non-farm business output," but enormously in terms of the percentage of "market cap". Did I get that right? If so, what does that mean/imply?
That would tend to imply these investments are much more productive than tangible investments, right?
Are "firm specific resources" here including "human resources"? In some sense, the employees don't show up on the balance sheet. The famous quote "all of our most valuable assets go home every night" is indicative of the power the particular people a firm employees...
This chart shows flow, while "capitalization" is stock. Stocks are usually bigger than flows.
Following up on this, the intangibles discussed here are a minority of "dark matter". S&P capitalization exceed $15 trillion in 2013, so 80% of that is $12 trillion. 22% of 2012 nonfarm output of 22 trillion is $4.5 trillion. Since this estimate of intangibles seems pretty extensive, that suggests the majority of intangibles is unearned things like oligopoly power and speculative froth.
Is that chart consistent with the chart from your earlier column? It seems the earlier one showed a far more dramatic change, but the vertical axes were different. Comparing the two, it seems that intangibles went up moderately in terms of the percentage of "non-farm business output," but enormously in terms of the percentage of "market cap". Did I get that right? If so, what does that mean/imply?