Using LASSO-family models to estimate the impact of monetary policy on corporate investments

C-Tier
Journal: Economics Letters
Year: 2022
Volume: 210
Issue: C

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, I use LASSO-family models to select the relevant explanatory variables for the transmission of monetary policy shocks on investments and discuss the implications for the transmission mechanism of monetary policy. The results here point to the effect that Lasso techniques help select the relevant regressors. When the covariates are selected using this procedure, the impact of monetary policy shocks on corporate investments is about 20% lower than that for a baseline approach.

Technical Details

RePEc Handle
repec:eee:ecolet:v:210:y:2022:i:c:s0165176521004420
Journal Field
General
Author Count
1
Added to Database
2026-01-25