Does Uncertainty Affect Investment Expenditure? A Comment

This is a theoretic and econometric assessment of Peter Ferderer’s seminal paper published in the Journal of Post Keynesian Economics with the same title in 1993. New data shows that high forecaster discords coincide with a decrease in Investment expenditure. Specifically, the forecaster discord about the aggregate level of employment explains an important part of the fluctuations in investment. Even if the forecaster discords are included in models based on Tobin’s q, they play an important role.