Quantitative easing and corporate innovation

Arbeitspapier

To what extent can Quantitative Easing impact productivity growth? We document a strong and heterogeneous response of corporate R&D investment to changes in debt financing conditions induced by corporate debt purchases under the ECB's Corporate Sector Purchase Program. Companies eligible for the program increase significantly their investment in R&D, relative to similar ineligible companies operating in the same country and sector. The evidence further suggests that by subsidizing the cost of debt, corporate bond purchases by the central bank stimulate innovation through a wealth transfer to innovative companies with low debt levels, rather than by supporting credit constrained firms.

Object Details

• ISBN: 978-92-899-4868-5
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ECB Working Paper ; No. 2615

Classification and Topics

• Classification: Wirtschaft ; General Financial Markets: General (includes Measurement and Data)
• Subject: Unconventional monetary policy ; quantitative easing ; corporate innovation ; productivity growth

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Grimm, Niklas ; Laeven, Luc ; Popov, Alexander
• Event: Veröffentlichung
• (who): European Central Bank (ECB)
• (where): Frankfurt a. M.
• (when): 2021

Further information

• DOI: doi:10.2866/020876
• Handle: http://hdl.handle.net/10419/249888
• Last update: 10.03.2025, 11:44 AM CET