Monetary policy, firm heterogeneity, and the distribution of investment rates

• 成果类型: Article
• 署名作者: Gnewuch, Matthias; Zhang, Donghai
• 署名单位: National University of Singapore
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2024.103721
• 发表日期: 2025
• 关键词: Investment rate distribution; adjustment costs; lumpy investment; Heterogeneous sensitivity; Extensive margin; monetary policy

摘要

We document that an interest rate cut reshapes the cross-sectional distribution of investment rates-fewer zero and small investment rates and more large ones-and particularly so among young firms. The extensive margin investment decision-whether to invest or not-is essential in explaining these findings. We develop a heterogeneous-firm model with fixed adjustment costs and firm life-cycle dynamics to rationalize the evidence and study the implications for the investment channel. The extensive margin investment decision makes monetary policy less effective whenever few firms are inclined to invest: in downturns, but also in economies with low business dynamism and few young firms.