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α: calibrated so average coauthorship-adjusted count equals average raw count
This paper documents several facts on the real effects of economic uncertainty. First, higher uncertainty is associated with a more dispersed distribution of output growth. Second, the relation is highly asymmetric: A rise in uncertainty is associated with a sharp decline in the lower tail of the growth distribution whereas it has a much smaller and insignificant impact on its upper tail. We build a model in which growth and uncertainty are both endogenous: rapid adoption of new technology raises economic uncertainty and may occasionally cause measured productivity to decline. The equilibrium growth distribution is negatively skewed and higher uncertainty leads to a thicker left tail. (Copyright: Elsevier)