This paper investigates the relationship between infation uncertainty and investment using a panel of loan-level data … investment. Moreover, there is a shift in the composition of investment away from fixed assets and towards working capital - the … more flexible factor of production - and fixed asset investment exhibits periods of inaction consistent with real option …

This paper shows that, with (partial) irreversibility, higher uncertainty reduces the impact effect of demand shocks on … investment. Uncertainty increases real option values making firms more cautious when investing or disinvesting. This is confirmed … both numerically for a model with a rich mix of adjustment costs, time-varying uncertainty, and aggregation over investment …

employment, investment and productivity, and a moderate loss in GDP. This temporary impact of a second moment shock is different …

even after controlling for investment, size, book-to-market and momentum as well as other known predictors of stock returns …-adjusted discount rates. The model implies that the investment rate and the hiring rate predicts stock returns because these variables …

Labor market institutions, via their effect on the wage structure, affect the investment decisions of firms in labor … structure in Europe in the 1980s. These different trends are the result of different investment decisions by firms for the jobs …