Q-Monetary Transmission

Priit Jeenas & Ricardo Lagos

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.

Related

Topics

Microeconomics
Economics of Information
Macroeconomics
Consumption and Investment
Money and Interest Rates
Monetary Policy
Financial Economics
Portfolio Selection and Asset Pricing
Corporate Finance

Programs

Economic Fluctuations and Growth
Monetary Economics

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