Darby, Julia; Hughes Hallett, Andrew; Ireland, Jonathan; … - C.E.P.R. Discussion Papers - 1998
Conventional wisdom has it that increasing price or exchange rate uncertainty will depress investment. Using the Dixit … uncertainty leads to more investment. It depends first on the risk of being stuck with (ex-post) unwanted investments, then on the … increase or decrease investment; and also to identify which types of industries would gain, and which would suffer, from a move …