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Investment, the Cost of Capital, and Monetary Policy in the Nineties in France: A Panel Data Investigation Author info | Abstract | Publisher info | Download info | Related research | Statistics Chatelain, Jean-Bernard (Banque de France)
AndrÈ Tiomo
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Using a large panel of 6,946 French manufacturing firms, this paper investigates the effect of monetary policy on investment from 1990 to 1999 through the cost-of-capital and the cash-flow channels. We compare several specifications of neo-classical demand for capital, taking into account transitory dynamics. The user cost of capital has a significant negative elasticity with respect to capital using traditional Within estimates, or as long as cash-flow is not added to the regression when using Generalised Method of Moments estimates. Asymmetries of effect of monetary policy are evaluated for different groups of firms which differ in terms of informational asymmetries.When dummy variables related to firms which are more sensitive to cash-flow are added in the model, the user cost elasticity is significant again.
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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2002 with number
45.
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Date of creation: 29 Aug 2002Date of revision:
Handle: RePEc:ecj:ac2002:45Contact details of provider: Web page: http://www.res.org.uk/society/annualconf.asp More information through EDIRC
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Paper Jean-Bernard Chatelain, 2001.
"Investment, the cost of capital, and monetary policy in the nineties in France: a panel data investigation ,"
Working Paper Series
106, European Central Bank.
[Downloadable!] Chatelain, J-B. & Tiomo, A., 2002.
"Investment, the Cost of Capital and Monetary Policy in the Nineties in France: A Panel Data Investigation ,"
Documents de Travail
96, Banque de France.
[Downloadable!] This paper has been announced in the following NEP Reports :
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Jean-Bernard Chatelain & Andrea Generale & Ignacio Hernando & Philip Vermeulen & Ulf von Kalckreuth, 2001.
"Firm investment and monetary policy transmission in the Euro area ,"
Working Paper Series
112, European Central Bank.
[Downloadable!]
Other versions:
von Kalckreuth, Ulf & Hernando, Ignacio & Generale, Andrea & Chatelain, Jean Bernard & Vermeulen, Philip, 2001.
"Firm Investment and Monetary Policy Transmission in the Euro Area ,"
Discussion Paper Series 1: Economic Studies
2001,20, Deutsche Bundesbank, Research Centre.
[Downloadable!] Chatelain, J-B. & Generale, A. & Hernando, I. & Von Kalckreuth, U. & Vermeulen, P., 2002.
"Firm Investment and Monetary Policy Transmission in the Euro Area ,"
Documents de Travail
97, Banque de France.
[Downloadable!] Jean-Bernard Chatelain & Andrea Generale & Ignacio Hernando & Ulf Von Kalckreuth & Philip Vermeulen, 2003.
"Firm investment and monetary policy transmission in the Euro Area ,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
halshs-00112525_v1, HAL.
[Downloadable!] Chatelain, Jean Bernard & Generale, Andrea & Hernando, Ignacio & Kalckreuth, Ulf von & Vermeulen, Philip, 2002.
"Firm Investment and Monetary Policy Transmission in the Euro Area ,"
10th International Conference on Panel Data, Berlin, July 5-6, 2002
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Jean-Bernard Chatelain & Andre Tiomo, 2002.
"Investment and the Cost of Capital in the Ninetiesin France: A Panel Data Investigation ,"
Post-Print
halshs-00112540_v1, HAL.
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Money Macro and Finance (MMF) Research Group Conference 2003
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Jean-Bernard Chatelain & Andrea Generale & Ignacio Hernando & Ulf Von Kalckreuth & Philip Vermeulen, 2003.
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