Learning and the Capital Age Premium

The TFP Channel of Credit Supply Shocks

“…While this as-sumption is not innocuous, I am making it here due to data constraints for the baseline analysis while relaxing it in Appendix C.4 of the online appendix to this paper by considering a much smaller sample limited to manufacturing firms. This assumption is also implicitly made by various papers in the literature that have measured logged MPK with the log of the revenue to capital ratio (see, e.g.,David et al (2018),Li et al (2018), andDavid and Venkateswaran (2019) 17 ).…”