Schumpeterian Profits in the American Economy: Theory and Measurement

  title={Schumpeterian Profits in the American Economy: Theory and Measurement},
  author={William Nordhaus},
  journal={Macroeconomics eJournal},
  • W. Nordhaus
  • Published 1 April 2004
  • Economics
  • Macroeconomics eJournal
The present study examines the importance of Schumpeterian profits in the United States economy. Schumpeterian profits are defined as those profits that arise when firms are able to appropriate the returns from innovative activity. We first show the underlying equations for Schumpeterian profits. We then estimate the value of these profits for the non-farm business economy. We conclude that only a miniscule fraction of the social returns from technological advances over the 1948-2001 period was… 
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  • Economics
    Journal of Political Economy
  • 1959
R ECENTLY, orbiting evidence of unAmerican technological competition has focused attention on the role played by scientific research in our political economy. Since Sputnik it has become almost trite
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