Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
In this letter, we demonstrate that the recent claim that productivity news shocks produce effects on trade and capital flows that are not in like with a standard Backus–Kehoe–Kydland model, are unique to the US and cannot be generalized. In a large set of developed countries, we show the BKK predictions to hold in both a stationary framework and using local projections to estimate impulse responses up to a 10 year horizon.