TY - JOUR AU - Chavez, Carlos PY - 2023/04/28 Y2 - 2024/03/29 TI - Heterogeneous Effects of Monetary Policy on Industries: Evidence from Publicly Traded Firms in Peru JF - Latin American Journal of Trade Policy JA - LAJTP VL - 6 IS - 15 SE - Articles DO - 10.5354/0719-9368.2023.67876 UR - https://lajtp.uchile.cl/index.php/LAJTP/article/view/67876 SP - 79-105 AB - <p>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.</p> ER -