David, Joel M.; Schmid, Lukas; Zeke, David - 2020
risk. Dispersion in MPK depends on (i) heterogeneity in firm-level risk premia and (ii) the price of risk, and thus is … component in firm-level MPK. Risk-based MPK dispersion, although not prima facie inefficient, lowers long-run aggregate … productivity by as much as 6%, suggesting large "productivity costs" of business cycles. …