A Tale of Two Margins: Monetary Policy and Capital Misallocation

Firm Heterogeneity, Capital Misallocation and Optimal Monetary Policy

“…Summing up, the empirical evidence supports the model prediction that the impact of monetary policy on investment is increasing in the productivity of the firm, which is the key mechanism behind the net-worth distribution channel. Albrizio et al (2021) show that, after an expansionary monetary policy shock, aggregate measures of misallocation decrease. This provides further evidence pointing at a decrease in misallocation as the net effect of the different general equilibrium forces after an expansionary monetary policy shock.…”

Sector-level economic effects of regulatory complexity: evidence from Spain

“…To analyse the impact of regulatory complexity according to the size and age characteristics of the companies, we use the merged Integrated Central Balance Sheet Data O ce and the DIRCE databases [as it is used in González et al, (2022)] to obtain rm-level data: number of active rms as well as entry and exit rates. This data represents a quasi-universe of the Spanish economy, as it is documented in Albrizio et al (2021). We also use data from the Continuous Work History Sample -Muestra Continua de Vidas Laborales (MCVL) which allows us to obtain information on the level of employment of different establishments according to the region in which their employees work.…”

The heterogenous effects of regulatory complexity: Evidence from more than 200k Spanish norms

“…To analyze the impact of regulatory complexity according to the size and age characteristics of the companies, we use the merged Integrated Central Balance Sheet Data O ce and the DIRCE databases [as it is used in González et al, (2022)] to obtain rm-level data: number of active rms as well as entry and exit rates. This data represents a quasi-universe of the Spanish economy, as it is documented in Albrizio et al (2021). Table 3 summarizes the percentages that each category accounts for over the total number of companies and total employment.…”