Abstract
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.
Original language | English (US) |
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Pages (from-to) | 971-1012 |
Number of pages | 42 |
Journal | Journal of Political Economy |
Volume | 132 |
Issue number | 3 |
DOIs | |
State | Published - Mar 1 2024 |
ASJC Scopus subject areas
- Economics and Econometrics