“…Aside from the exact magnitude of the intangible capital stock, it is safe to say that intangible capital is a crucial component of the market price of a firm to the extent that the market price of the firm measures the value of all its different forms of productive capital (e.g., plants, structures, know-how, employee expertise, organization capital, etc.). Data also suggest that U.S. firms have steadily increased the stock of intangible capital over the past 60 years, for example, Hall (2001) and Falato, Kadyrzhanova, and Sim (2013).Recent literature on fluctuating economic uncertainty emphasizes that the impact of temporary volatility shock appears to be salient in the production side of the real economy, for example, Bloom (2009) and Arellano, Bai, and Kehoe (2012). In particular, Bloom (2009) shows that an increase in aggregate volatility is associated with an increase in the dispersion of firm profit growth, firm stock return, total factor productivity, and GDP forecast.…”