Pelli, Martino; Tschopp, Jeanne; Bezmaternykh, Natalia; … - 2020
In this paper we provide a new identification strategy to test for the presence of putty-clay capital, i.e. capital that once installed cannot be re-invested. Using a panel of Indian manufacturing firms between 1995 and 2006, we quantify the response of firm sales within and across industries to...