Mariana Mazzucato - The Value of Everything - Making and Taking in the Global Economy

31. Empirical groundwork in Lester Thurow, Generating Inequality (New York: Basic Books, 1975), ch. 6, pp. 129–54.

32. Source: Federal Reserve Bank of St Louis, author’s elaboration: https://fred.stlouisfed.org/series/FBCOEPQ027S#0

33. Barba and de Vivo, ‘An “unproductive labour” view of finance’, pp. 1490–91.

34. Ibid., p. 1491.

35. Andy Verity, ‘Libor: Bank of England implicated in secret recording’, BBC, 10 April 2017: http://www.bbc.co.uk/news/business-39548313

36. Barba and de Vivo, ‘An “unproductive labour” view of finance’, p. 1489.

37. T. Philippon, ‘Finance vs Wal-Mart: Why are financial services so expensive?’, in A. Blinder, A. Lo and R. Solow (eds), Rethinking the Financial Crisis (New York: Russell Sage Foundation, 2012), p. 13: http://www.russellsage.org/sites/all/files/Rethinking-Finance/Philippon_v3.pdf

38. John C. Bogle, ‘The arithmetic of “all-in” investment expenses’, Financial Analysts Journal , 70(1) (2014), p. 18.

39. Ibid., p. 17.

40. John C. Bogle, The Clash of the Cultures: Investment vs. Speculation (Hoboken, NJ: John Wiley and Sons, 2012), p. 8.

41. Ibid., p. 2.

42. https://www.ft.com/content/ab1ce98e-c5da-11e6-9043-7e34c07b46ef

43. https://www.nytimes.com/2016/12/10/business/dealbook/just-how-much-do-the-top-private-equity-earners-make.html

44. A. Metrick and A. Yasuda, ‘The economics of private equity’, Review of Financial Studies , 23(6) (2011), pp. 2303–41: https://doi.org/10.1093/rfs/hhq020

45. If ratio of proceeds from PE investments to public investment is > 1, PE is considered superior. Source: Journal of Finance, 69 (5) (October 2014), p. 1860.

46. J. M. Hill, ‘Alpha as a net zero-sum game: How serious a constraint?’, Journal of Portfolio Management , 32(4) (2006), pp. 24–32; doi:10.3905/jpm.2006.644189

6. FINANCIALIZATION OF THE REAL ECONOMY

1. https://www.ft.com/content/294ff1f2-0f27-11de-ba10-0000779fd2ac

2. These figures give an approximate idea of the weight of large companies in the economy. On the one hand, some companies do not report their turnover, so total revenues are underestimated. On the other hand, the list includes the biggest banks.

3. G. Mukunda, ‘The price of Wall Street’s power’, Harvard Business Review , June 2014.

4. E. Hadas, ‘Seeing straight: Why buybacks should be banned’, Breakingviews , 14 December 2014: https://www.breakingviews.com/features/why-buybacks-should-be-banned/

5. W. Lazonick, ‘Profits without prosperity’, Harvard Business Review , September 2014.

6. Ibid.

7. http://online.wsj.com/public/resources/documents/blackrockletter.pdf

8. Source: Adapted from Lazonick, ‘Profits without prosperity’.

9. Jensen and Meckling, ‘Theory of the firm’, pp. 305–60.

10. Source: Bain & Co., Global Private Equity Report (2015), fig. 2, p. 43.

11. https://www.blackstone.com/the-firm/asset-management/private-equity

12. D. Burns, L. Cowie, J. Earles, P. Folkman, J. Froud, P. Hyde, S. Johal, I. Rees Jones, A. Killett and K. Williams, Where Does the Money Go? Financialised Chains and the Crisis in Residential Care , CRESC Public Interest Report, March 2015.

13. G. Ruddick, ‘Four Seasons Health Care reports £264m annual loss’, the Guardian , 27 April 2016.

14. K. Bayliss, ‘Case study: The financialisation of water in England and Wales’, FESSUD (Financialisation, Economy, Society and Sustainable Development), Working Paper series no. 52 (2014).

15. W. Lazonick, ‘Innovative enterprise or sweatshop economics? In search of foundations of economic analysis’, ISIGrowth Working Paper no. 17 (2016).

16. P. Aghion, J. Van Reenen and L. Zingales, ‘Innovation and institutional ownership’, American Economic Review , 103(1) (2013), pp. 277–304.

17. Bogle, The Clash of the Cultures .

18. J. M. Keynes, The General Theory of Employment, Interest and Money (London: Macmillan, 1936), p. 154.

19. Ibid., p. 155.

20. S. Patterson, Dark Pools: The Rise of AI Trading Machines and the Looming Threat to Wall Street (New York: Random House, 2012).

21. Amy Or, ‘Average private equity hold times drop to 5.5 years’, Wall Street Journal , 10 June 2015.

22. D. Barton and M. Wiseman, ‘Focusing capital on the long term’, Harvard Business Review, January–February 2014.

23. Ibid.

24. Keynes, General Theory of Employment , pp. 161–2.

25. Return on Invested Capital is a measure of profitability. It is calculated by dividing net (after tax) operating profits by invested capital (less cash and cash equivalents).

26. J. P. Morgan, ‘Bridging the gap between interest rates and investments’, JPM Corporate Finance Advisory, September 2014.

27. K. J. Murphy, ‘Executive compensation: Where we are, and how we got there’, in G. M. Constantinides, M. Harris and R. M. Stulz (eds), Handbook of the Economics of Finance , vol. 2 (Amsterdam: Elsevier, 2013), pp. 211–356.

28. L. Mishel and J. Schieder, CEO Pay Remains High Relative to the Pay of Typical Workers and High-wage Earners (Washington, DC: Economic Policy Institute, 2017).

29. The Conference Board, CEO Succession Practices: 2017 Edition , https://www.conference-board.org/publications/publicationdetail.cfm?publicationid=7537

30. Fig. 26 depicts data retrieved from the Bureau of Economic Analysis website.

31. J. Asker, J. Farre-Mensa and A. Ljungqvist, ‘Comparing the investment behavior of public and private firms’, NBER Working Paper No. 17394 (September 2011).

32. Author’s elaboration of data from the Bureau of Economic Analysis.

33. Author’s elaboration of data from the Bureau of Economic Analysis.

34. Bogle, The Clash of the Cultures , pp. 22–3.

35. M. Friedman, Capitalism and Freedom (Chicago: University Press, 1962), p. 133.

36. R. E. Freeman, J. S. Harrison, A. C. Wicks, B. L. Parmar and S. de Colle, Stakeholder Theory: The State of the Art (Cambridge: University Press, 2010), p. 268.

37. https://www.kfw.de/KfW-Group/About-KfW/Identität/Geschichte-der-KfW/

38. C. Leggett, ‘The Ford Pinto case: The valuation of life as it applies to the negligence-efficiency argument’, Law & Valuation , Spring 1999.

39. C. Perez, Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages (Cheltenham: Edward Elgar, 2002).

40. C. Perez, ‘The Double bubble at the turn of the century: Technological roots and structural implications’, Cambridge Journal of Economics 33(4) (2009), p. 801.

7. EXTRACTING VALUE THROUGH THE INNOVATION ECONOMY

1. https://www.netmarketshare.com/search-engine-market-share.aspx?qprid=4&qpcustomd=0

2. R. Solow, ‘Technical change and the aggregate production function’, Review of Economics and Statistics , 39 (3) (1957), pp. 312–20: JSTOR 1926047; R. R. Nelson and S. G. Winter, An Evolutionary Theory of Economic Change (Cambridge, MA: Harvard University Press, 2009).

3. D. J. Teece, ‘Profiting from technological innovation’, Research Policy , 15(6) (1986), pp. 285–305.

4. https://www.theatlantic.com/magazine/archive/2015/11/we-need-an-energy-miracle/407881/

5. https://www.washingtonpost.com/opinions/americas-miracle-machine-is-in-desperate-need-of-well-a-miracle/2017/05/05/daafbe6a-30e7-11e7-9534-00e4656c22aa_story.html?utm_term=.b38348fbc471

6. https://hbr.org/2014/05/why-germany-dominates-the-u-s-in-innovation

7. M. K. Block and F. Keller, ‘Explaining the transformation in the US innovation system: The impact of a small government program’, Socioeconomic Review 11(4) (2013), pp. 629–56: https://doi.org/10.1093/ser/mws021