Market concentration, macroeconomic uncertainty and monetary policy

Giovannoni, Francesco and de Dios Tena, Juan ORCID: 0000-0001-8281-2886
(2008) Market concentration, macroeconomic uncertainty and monetary policy. European Economic Review, 52 (6). pp. 1097-1123.

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This paper studies the effect of market structure and macroeconomic uncertainty on the transmission of monetary policy. We motivate our analysis with a simple model which predicts that: (1) investment and production in more concentrated sectors are more affected by demand shocks and (2) high uncertainty makes investment and production more sensitive to demand shocks. The empirical analysis estimates the effect of monetary shocks on sectoral output for different sectors in the US using a structural vector autoregressive (VAR) approach. The results are generally consistent with the theoretical predictions. © 2007 Elsevier B.V. All rights reserved.

Item Type: Article
Depositing User: Symplectic Admin
Date Deposited: 22 Sep 2015 09:59
Last Modified: 17 Dec 2022 01:06
DOI: 10.1016/j.euroecorev.2007.09.001
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