A separate way to measure rate of return

TL;DR

This paper introduces a novel method to measure the rate of return using data on consumption, pay, and market-value capital, also revealing factor shares in consumption.

Contribution

It proposes a new approach to estimate the rate of return from consumption and capital data, enhancing understanding of factor shares.

Findings

New method to measure rate of return from consumption and capital data

Reveals factor shares in consumption

Provides an alternative to net profit-based calculations

Abstract

Net profit is sometimes found from data for net operating surplus. We propose a way to find it from data for consumption, pay and market-value capital, and concomitantly to reveal the factor shares in consumption.