Perspectives on the Labor Share Online Appendix.

This document is an online appendix titled "Perspectives on the Labor Share." It provides details on the measurement of the labor share and presents additional empirical results for the labor share of the United States and other countries. The document discusses various models of the labor share and tests of dynamic efficiency. It includes information on types of capital income, rental income, business current transfer payments, and the surplus of government enterprises. The author questions the approach of the Bureau of Labor Statistics (BLS) in allocating taxes on property and motor vehicles to capital income. The text also discusses various aspects related to income allocation and measurement in the corporate sector, including the treatment of expenses on intangible investments and the inclusion of services provided by durable goods in GDP and capital income. The article compares labor shares from the Penn World Table to its own US measures and discusses different measures of labor share in the United States, including measures that exclude the housing and government sectors. The analysis finds variations in labor share over different time periods. The document also explores the effects of capital-augmenting technology and the cost of capital on the labor share. It discusses the problem of determining the price of a composite good and the labor share of income, and presents equations and models to analyze the relationship between these factors. The text concludes by cautioning about the assumptions made in the models discussed. The document also discusses the elasticity of substitution between capital and labor and various estimation strategies. It explores concerns about the methodology used to calculate markup ratios in CompuStat [Extracted from the article]