000004358 001__ 4358
000004358 005__ 20250425154952.0
000004358 0247_ $$a10.3886/E191747V1$$2DOI
000004358 02470 $$a10.3886/E191747$$2DOI
000004358 041__ $$aeng
000004358 084__ $$aE12 Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory$$03013
000004358 084__ $$aE22 Investment; Capital; Intangible Capital; Capacity$$03022
000004358 084__ $$aG31 Capital Budgeting; Fixed Investment and Inventory Studies; Capacity$$03146
000004358 084__ $$aG32 Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill$$03147
000004358 245__ $$aData and Code for "Reassessing the Relevance of Financial Shocks in an Estimated Heterogeneous Firm Model"
000004358 251__ $$a1
000004358 260__ $$bAmerican Economic Association
000004358 269__ $$a2024-07-01
000004358 336__ $$aDataset
000004358 506__ $$aFiles may be downloaded from digital repository linked in the DOI field
000004358 518__ $$o2024-07-01$$dIssued
000004358 520__ $$aI study the transmission of financial shocks using an estimated heterogeneous firm model. Following a contractionary financial shock, financially constrained firms cut investment, but unconstrained firms increase investment due to the lower capital price and interest rate. After matching the empirical dynamics of prices and the price elasticity of investment, I find a limited role of the unconstrained firms’ response in dampening the aggregate investment decline. Non-financial capital adjustment friction is the key to generating this result. Without the capital adjustment friction, unconstrained firms’ investment becomes unrealistically sensitive to prices, and the model would understate the financial shocks’ aggregate relevance. <p> <p> Data and code for peer-reviewed article published in American Economic Journal: Macroeconomics. When citing this dataset, please also cite the associated article. A sample Publication Citation is provided below.$$7Abstract
000004358 540__ $$aMIT License$$uhttps://opensource.org/license/mit/$$fMIT
000004358 7001_ $$aGuo, Xing$$7Personal$$uBank of Canada$$3https://ror.org/05cc98565$$5ROR
000004358 791__ $$aJournalArticle$$eIsSupplementTo$$iReproducibility package is associated with peer-reviewed article$$w10.1257/mac.20200447$$c2024$$dAmerican Economic Journal: Macroeconomics (American Economic Association)$$tReassessing the Relevance of Financial Shocks in an Estimated Heterogeneous Firm Model$$2DOI$$j16$$k3$$q131$$o159
000004358 791__ $$aText$$eIsSupplementTo$$iAssociated article is first published as Bank of Canada Staff Working Paper$$w10.34989/swp-2020-17$$c2020$$dBank of Canada$$tIdentifying Aggregate Shocks with Micro-level Heterogeneity: Financial Shocks and Investment Fluctuation$$2DOI$$jStaff Working Paper$$k2020-17
000004358 8301_ $$aReproducibility Package
000004358 8301_ $$aEnsemble de données pour la reproductibilité des résultats de recherche
000004358 909CO $$ooai:www.oar-rao.bank-banque-canada.ca:4358$$pbibliographic
000004358 937__ $$aGuo, X$$b2024$$cReassessing the Relevance of Financial Shocks in an Estimated Heterogeneous Firm Model$$dAmerican Economic Journal: Macroeconomics$$e16$$f3$$ghttps://doi.org/10.1257/mac.20200447
000004358 980__ $$aStaff Research
000004358 980__ $$aRDM
000004358 980__ $$aResearch Reproducibility Packages
000004358 991__ $$aPublic