Firm Size and Monetary Policy Transmission

Tjalling C. Koopmans Research Institute

Discussion Paper Series nr: 06-14

Firm Size and Monetary Policy Transmission: A Theoretical Model on the Role of Capital Investment Expenditures

Katharina Raabe, Ivo Arnold, Clemens Kool

Tjalling C. Koopmans Research Institute Utrecht School of Economics Utrecht University Janskerkhof 12 3512 BL Utrecht The Netherlands telephone +31 30 253 9800 website www.koopmansinstitute.uu.nl The Tjalling C. Koopmans Institute is the research institute and research school of Utrecht School of Economics. It was founded in 2003, and named after Professor Tjalling C. Koopmans, Dutch-born Nobel Prize laureate in economics of 1975. In the discussion papers series the Koopmans Institute publishes results of ongoing research for early dissemination of research results, and to enhance discussion with colleagues. Please send any comments and suggestions on the Koopmans institute, or this series to M.deSwart-Gijsbers@econ.uu.nl

ontwerp voorblad: WRIK Utrecht

How to reach the authors

Please direct all correspondence to the first author.

Katharina Raabe Maastricht University Department of Economics P.O. box 616 6200 MD Maastricht The Netherlands Telephone: +31 43-3883691 Email: K.Raabe@algec.unimaas.nl Ivo Arnold Nyenrode Business University Straatweg 25 P.O. Box 130 3620 AC Breukelen The Netherlands Tel +31 346 291 211 Fax +31 346 264 204 E-mail: i.arnold@nyenrode.nl

Clemens Kool Utrecht University Utrecht School of Economics Janskerkhof 12 3512 BL Utrecht The Netherlands. E-mail: c.kool@econ.uu.nl

This paper can be downloaded at: http://www.koopmansinstitute.uu.nl

Utrecht School of Economics Tjalling C. Koopmans Research Institute Discussion Paper Series 06-14

Firm Size and Monetary Policy Transmission: A Theoretical Model on the Role of Capital Investment Expenditures

Katharina Raabea Ivo Arnoldb Clemens Koolc

a

Maastricht University

b

Nyenrode Business University

c

Utrecht School of Economics...