Causal State-Dependent Local Projections

The study develops nonparametric local projections to identify how economic shocks affect outcomes differently across states, uncovering a hump-shaped investment response to monetary policy that linear methods understate.

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Featured in No. 138 on 6 Nov 2026 · 4 days after release

Figure 3: Impulse Response of Firm-Level Investment to a Monetary Policy Shock

Released: 2 Nov 2026
First featured: No. 138 · 6 Nov 2026
Published in: Not yet, as far as Semantic Scholar knows
Fanfare: 3 of 5
Identifier: RePEc:fip:fedhwp:103968
Authors: Joel M. David et al.

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