The monetary transmission mechanism: Evidence from the industries of five OECD countries

Dedola, Luca; Lippi, Francesco

doi:10.1016/j.euroecorev.2003.11.006

Cited by 369 publications

(365 citation statements)

References 18 publications

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“…A tighter monetary policy reduces the amount of credit for borrowers when the central bank has a leverage over the volume of intermediated credit. Small firms, more dependent on intermediated credit, are adversely affected; large firms can instead rely on easier access to other forms of external finance (Christiano et al, 1996;Ehrmann, 2000;Dedola and Lippi, 2000).…”

Section: Borrowing Constraints (Firm Size)mentioning

confidence: 99%

“…Specifically, firm size may be responsible for the transmission of monetary shocks through the so called "balance-sheet" and the "banklending" channels (Bernanke and Gertler, 1995;Carlino and DeFina, 1998;Guiso et al, 2000;Ehrmann, 2000;Dedola and Lippi, 2000). In the balance-sheet view, given asymmetric information, access to credit depends on the value of firms" assets, acting as collateral.…”

Section: Borrowing Constraints (Firm Size)mentioning

confidence: 99%

“…Uncertainty remains for the effect of firm size on the probability to produce a normal level of output, Pr y 2 . We 4 The analyses of the effect of firm size on the transmission of monetary policy shock carried out by Christiano et al (1996), Ehrmann (2000), Dedola and Lippi (2000) and Carlino and DeFina (1998) are based on the use of Structural VAR approaches. The authors first identify either sectoral or regional differences in the output effect of unanticipated monetary policy shocks by means of impulse response functions and then use aggregated size composition measures (either at sectoral or regional level) as determinants of the monetary policy impacts.…”

Section: Borrowing Constraints (Firm Size)mentioning

confidence: 99%

“…Due to the high inter-industry heterogeneity in export propensity, regional differences in the industry mix are therefore the major responsible for regional differentials in business cycle intensity. The role of industry mix is also highlighted within the "interest rate channel view" of the monetary policy transmission theory (Carlino and DeFina, 1998;Dedola and Lippi, 2000): the output sensitiveness to a policy induced variation in the short-term interest rate varies significantly across industries, so as the monetary policy may have asymmetric effects on regions with large differences in the industrial structure. It is puzzling that, after controlling for industrial composition, these studies still find significant regional cyclical heterogeneity, so as the industry mix can only partially explain these differences.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Firm heterogeneity and regional business cycles differentials

Basile¹,

Nardis²,

Pappalardo³

2013

Journal of Economic Geography

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in

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Section: Borrowing Constraints (Firm Size)mentioning

confidence: 99%

Section: Borrowing Constraints (Firm Size)mentioning

confidence: 99%

Section: Borrowing Constraints (Firm Size)mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Firm heterogeneity and regional business cycles differentials

Basile¹,

Nardis²,

Pappalardo³

2013

Journal of Economic Geography

View full text Add to dashboard Cite

show abstract

“…However, studies correlating corporate financial structure with changes in monetary policy have been limited. In one of the earliest studies, Dedola and Lippi (2000) analyze four European countries and the US. They estimate the elasticities of output with respect to monetary policy indicators for various industries and employ firm-level indicators to explain the magnitude of these elasticities.…”

Section: Received Literaturementioning

confidence: 99%

Does Monetary Policy Matter for Corporate Governance? Firm-Level Evidence From India

Ghosh¹,

Sensarma²

Advances in Financial Economics

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________________________________________________________________________ AbstractThe paper assembles data on over 1,000 manufacturing and services firms in India for the entire post-reform period from 1992 through 2002 to examine the association between corporate governance and monetary policy. The findings suggests that (a) public firms are relatively more responsive to a monetary contraction vis-à-vis their private counterparts; and, (b) quoted firms lower their long-term bank borrowings in favour of short-term borrowings, post monetary tightening, as compared with unquoted firms. A disaggregated analysis based on firm size and leverage above a certain threshold validates these findings. The study concludes by analyzing the broad policy implications of these findings.

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Inflation‐growth nexus in developing economies: New empirical evidence from a disaggregated approach

Ayyoub

Wörz

2019

Int. J Fin Econ

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This study challenges the traditional way of examining the "inflation-output growth nexus". Research at the aggregate level yields mostly ambiguous results, we perform a dis-aggregated analysis of output growth and inflation. For each sector-industry, services and agriculture-we consider inflation and the value-added growth in a sample of 113 developing (low and middle income) economies over the period 1974-2013. Empirical investigation reveals that different sectors of the economy respond differently to various impulses of inflation. Specifically, inflation impacts the growth of industrial and services sectors negatively; whereas a growth enhancing relationship has been found for the agriculture sector. We further calculated a threshold level, for each sector, beyond which inflation is harmful to growth. These are 13.48 %, 14.48 %, 15.37 % and 40 % for aggregate GDP, industrial, services and agriculture sectors respectively. This implies that the central banks of developing economies must weigh the varying consequences of its actions on individual sectors bearing in mind each sector's share in the respective economy.

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The monetary transmission mechanism: Evidence from the industries of five OECD countries

Cited by 369 publications

References 18 publications

Firm heterogeneity and regional business cycles differentials

Firm heterogeneity and regional business cycles differentials

Does Monetary Policy Matter for Corporate Governance? Firm-Level Evidence From India

Inflation‐growth nexus in developing economies: New empirical evidence from a disaggregated approach

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