Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru

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dialnet-ar-18-ART00016086592023-06-30Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in PeruChavez, CarlosMonetary PolicyHeterogeneous IndustriesLocal ProjectionsPolítica MonetariaIndustrias HeterogéneasProyecciones localesThis paper studies the effects of a monetary policy shock on the industry’s profitability through publicly traded firms in Peru. I use a monetary policy shock that controls the possible endogeneity between the monetary policy with the economic activity and the Central Bank’s anticipation of economic events. I use two profitability measures: ROA and Net Profits. The methodology is Local Projections (LP) because it allows for control of the persistence of monetary policy shocks; in case of biases, it is usually smaller than the traditional methodologies used, such as vector autoregressive (VAR), and because Local Projection is parsimonious. The results I find are heterogeneous and differentiated in terms of quantification and persistence for those dependent variables through industries. These results suggest the existence of a strong credit channel in the transmission mechanism of a monetary policy shock.Este artículo estudia los efectos de un shock de política monetaria sobre la rentabilidad de la industria a través de empresas cotizadas en Perú. Se utiliza un shock de política monetaria que controla la posible endogeneidad entre la política monetaria y la actividad económica, así como la anticipación del Banco Central a eventos económicos. Se utilizan dos medidas de rentabilidad: ROA y beneficios netos. La metodología utilizada es Proyecciones Locales (LP) porque permite controlar la persistencia de los shocks de política monetaria, y en caso de sesgos, suele ser más pequeña que las metodologías tradicionales utilizadas, como Vector Autorregresivo (VAR), y porque las Proyecciones Locales son parsimoniosas. Los resultados encontrados son heterogéneos y diferenciados en términos de cuantificación y persistencia para aquellas variables dependientes a través de las industrias. Estos resultados sugieren la existencia de un fuerte canal de crédito en el mecanismo de transmisión de un shock de política monetaria.2023text (article)application/pdfhttps://dialnet.unirioja.es/servlet/oaiart?codigo=9002931(Revista) ISSN 0719-9368Latin American Journal of Trade Policy, ISSN 0719-9368, Vol. 6, Nº. 15, 2023 (Ejemplar dedicado a: Latin American Journal of Trade Policy), pags. 79-105engLICENCIA DE USO: Los documentos a texto completo incluidos en Dialnet son de acceso libre y propiedad de sus autores y/o editores. Por tanto, cualquier acto de reproducción, distribución, comunicación pública y/o transformación total o parcial requiere el consentimiento expreso y escrito de aquéllos. Cualquier enlace al texto completo de estos documentos deberá hacerse a través de la URL oficial de éstos en Dialnet. Más información: https://dialnet.unirioja.es/info/derechosOAI | INTELLECTUAL PROPERTY RIGHTS STATEMENT: Full text documents hosted by Dialnet are protected by copyright and/or related rights. This digital object is accessible without charge, but its use is subject to the licensing conditions set by its authors or editors. Unless expressly stated otherwise in the licensing conditions, you are free to linking, browsing, printing and making a copy for your own personal purposes. All other acts of reproduction and communication to the public are subject to the licensing conditions expressed by editors and authors and require consent from them. Any link to this document should be made using its official URL in Dialnet. More info: https://dialnet.unirioja.es/info/derechosOAI

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Latin American Journal of Trade Policy, ISSN 0719-9368, Vol. 6, Nº. 15, 2023 (Ejemplar dedicado a: Latin American Journal of Trade Policy), pags. 79-105

English

Monetary Policy
Heterogeneous Industries
Local Projections
Política Monetaria
Industrias Heterogéneas
Proyecciones locales

Monetary Policy
Heterogeneous Industries
Local Projections
Política Monetaria
Industrias Heterogéneas
Proyecciones locales
Chavez, Carlos
Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru

This paper studies the effects of a monetary policy shock on the industry’s profitability through publicly traded firms in Peru. I use a monetary policy shock that controls the possible endogeneity between the monetary policy with the economic activity and the Central Bank’s anticipation of economic events. I use two profitability measures: ROA and Net Profits. The methodology is Local Projections (LP) because it allows for control of the persistence of monetary policy shocks; in case of biases, it is usually smaller than the traditional methodologies used, such as vector autoregressive (VAR), and because Local Projection is parsimonious. The results I find are heterogeneous and differentiated in terms of quantification and persistence for those dependent variables through industries. These results suggest the existence of a strong credit channel in the transmission mechanism of a monetary policy shock.

Article

Chavez, Carlos

Chavez, Carlos

Chavez, Carlos

Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru

Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru

Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru

Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru

Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru

heterogeneous effects of monetary policy on industries: evidence from publicly traded firms in peru

2023

https://dialnet.unirioja.es/servlet/oaiart?codigo=9002931

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