The authors are aware of the Johnson et al. paper (JME 2013) and other critiques of the PWT data. However, while the LCU numbers are appropriate for single-country analysis, these are not suitable for panel-data format which is a significant part of this study. Therefore, we use the PWT numbers throughout and hope that single-country analysis with these numbers is a reasonable approximation to the scenario indicated by LCU data.
Round 2: Author Response to Reviewer 1 Please note the following changes in revised version: