Long-Run Productivity Risk: A New Hope for Production-Based Asset Pricing?

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Optimal climate change mitigation under long-term growth uncertainty: Stochastic integrated assessment and analytic findings (2014, background): “Such persistent shocks are used in the macroeconomic literature to model uncertainty in growth trends (Aguiar & Gopinath 2007, Croce 2013).”
Kaldor and Piketty’s facts: The rise of monopoly power in the United States (2021, unknown): “…premium in the data, we follow the macro-finance literature and include long-run productivity risk in our model, as in Bansal and Yaron (2004) and Croce (2014).34 There are two sources of uncertainty in productivity growth: an i.i.d short-run shock that is standard in RBC models ( a), and a…”