0 profits made by selling property or an investment --
1 profits made by selling shares of a company or buildings and land --
This reflects that the ability to cash in on capital gains is much higher within this pasture- and croppingbased area.
In the models we study, variations in the rate of return on equity are primarily determined by variations in capital gains.
Our analysis suggests that capital gains play a crucial role in generating empirically plausible mean equity premia.
The degree of sensitivity will depend on how rapidly capital gains are incorporated into asset values.
About 0.25 % is due to capital gains difference and 0.15 % is due to dividend imputation benefits.
These prices reflected the large capital gains accumulated in previous years and possibly a control premium.
Actual returns are calculated using the information on investment income and capital gains reported in the form 5500 data.
In particular, the linearity of capital accumulation eliminates potential capital gains and effectively makes the supply of capital perfectly elastic.
