Young Firms and Monetary Policy Transmission

Young Firms and Monetary Policy Transmission
READ MORE...
Volume/Issue: Volume 2021 Issue 063
Publication date: March 2021
ISBN: 9781513571584
$18.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
paperback else
pdf else
epub else
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Labor , Economics- Macroeconomics , Money and Monetary Policy , Economics / General , International - Economics , Demography , firm demographics , business dynamism , monetary policy , local projections , U , S , states , , U , S , states , monetary policy shock , entry rate , population demographics , policy function , startup firm , exit rate , firm productivity , growth rate , Employment , Wages , Personal income , Credit ratings , Global

Also of interest
August 2009 Working Papers
April 2010
March 2010
January 2010
Summary

We investigate the role of business dynamism in the transmission of monetary policy by exploitingthe variation in firm demographics across U.S. states. Using local projections, we find that a larger fraction of young firms significantly mutes the effects of monetary policy on the labor market and personal income over the medium term. The firm entry rate and the employment share of young firms are key factors underpinning these results, which are robust to a battery of robustness tests. We develop a heterogeneous-firm model with age-dependent financial frictions that rationalizes the empirical evidence.

Powered by: AIDC