Employment and the residential collateral channel of monetary policy

Bahaj, S, Foulis, A, Pinter, G and Surico, P (2022) Employment and the residential collateral channel of monetary policy. Journal of Monetary Economics. ISSN 0304-3932 (In Press)

Abstract

Using micro-data covering private and public UK firms, we document heterogeneous responses to monetary policy; finding that employment at younger, more-levered firms is most sensitive. This heterogeneity is consistent with firm-level financial constraints. To show this, we exploit the fact that the homes of company directors are a key source of corporate collateral, but many directors live in a different region to their firm, allowing specifications controlling for demand. Younger, more-levered firms exposed to collateral fluctuations drive the employment response, showing a residential collateral channel in the transmission of monetary policy to firms.

More Details

Item Type: Article
Subject Areas: Economics
Date Deposited: 10 Oct 2022 12:37
Last Modified: 08 Oct 2024 01:45
URI: https://lbsresearch.london.edu/id/eprint/2612
More

Export and Share


Download

Full text not available from this repository.

Statistics

Altmetrics
View details on Dimensions' website

Downloads from LBS Research Online

View details

Actions (login required)

Edit Item Edit Item