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Thomas Drechsel

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Case report Open access Oct 2026

The Investment Channel of Monetary Policy: Disentangling Firm Heterogeneity

To study monetary policy transmission at the firm level, researchers typically consider heterogeneity along a small number of firm characteristics, such as size or leverage. We instead estimate the full distribution of firms’ investment responses to monetary policy, using a clustering regression framework. Our novel ap...

Thomas Drechsel, Davide Melcangi, Laura Pilossoph et al. · 2 citations

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