Fwd: Re: bull market reasoning

[Brad De Long]

>> of (physical) capital.  In any case, we're agreed that the investment is
>> (largely) external, implying that whoever's balance sheet it shows up on,
>> it shouldn't be that of the company that spent the cash.
>
>Daniel, I really don't understand such matters. I think I am in Brad's
>kill file, so maybe he'll respond to you.  If research, etc. is an
>externality, it won't show up on anyone's balance sheet, no? This leads to
>underestimation of the accumulation of (human) capital on which profit
>expectations are based.
>
>yrs, rakesh

You are? I don't think so...

Brad DeLong

Professor J. Bradford DeLong
Department of Economics, #3880
University of California at Berkeley
Berkeley, CA 94720-3880
(510) 643-4027; (925) 283-2709 voice
(510) 642-6615; (925) 283-3897 fax
http://www.j-bradford-delong.net/