Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/266992 
Year of Publication: 
2022
Series/Report no.: 
Working Paper No. 2022-02
Publisher: 
University of Massachusetts, Department of Economics, Amherst, MA
Abstract: 
In this paper we present estimates of the world profit rate using country-level data from the Extended Penn World Table 7.0 and industry-level data from the World Input Output Database. The country-aggregated world profit rate series spans the period from 1960 to 2019, and the industry-aggregated world profit rate series runs from 2000 to 2014. The country-aggregated world profit rate series displays a strong negative linear trend for the period 1960-1980 and a weaker negative linear trend from 1980 to 2019. A medium run decomposition analysis reveals that the decline in the world profit rate is driven by a decline in the output-capital ratio. The industry-aggregated world profit rate shows a negative linear trend for the period 2000-2014, which, once again, is driven by a fall in the output-capital ratio. We have created a World Profitability Dashboard to allow researchers to freely access profit rate series and the underlying data at country, industry, country-group and world levels of aggregation.
Subjects: 
profit rate
profit share
output-capital ratio
profitability decomposition
JEL: 
B51
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

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