Kundu, Shohini; Vats, Nishant - 2021
construct non-capital (idiosyncratic) shocks, using labor productivity shocks to large firms. We document a change in the … relationship between foreign idiosyncratic shocks and domestic economic growth between 1978 and 2000. Contemporaneous changes in … associated with a 0.05-0.26 pp increase in economic growth. Lastly, this can potentially explain the Great Moderation. …