Q-Monetary Transmission

We study the effects of monetary policy–induced changes in Tobin’s q on corporate investment and capital structure. We develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the evidence, and quantify the relevance for monetary transmi...

Full description

Saved in:
Bibliographic Details
Published in:The Journal of political economy 2024-03, Vol.132 (3), p.971-1012
Main Authors: Jeenas, Priit, Lagos, Ricardo
Format: Article
Language:English
Subjects:
Capital
Capital structure
Investments
Monetary policy
Policy making
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:We study the effects of monetary policy–induced changes in Tobin’s q on corporate investment and capital structure. We develop a theory of the mechanism, provide empirical evidence, evaluate the ability of the quantitative theory to match the evidence, and quantify the relevance for monetary transmission to aggregate investment.
ISSN:0022-3808
1537-534X
DOI:10.1086/726904