This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … uncertainty, as firms place a greater value on the option to wait. Using simulated data we show that this more cautious behaviour … can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock …

case of weaker advantage, the investing firm enters just before its competitor would. In a context of increased uncertainty …

the option values created by irreversibility and uncertainty. Externalities introduce inefficiencies in investment …

activity on the degree of uncertainty about industry conditions. …

of industry structure. We study a multi-period investment game where there is demand uncertainty. Allowing for time … after the resolution of uncertainty. As time-to-build becomes more substantial, however, the likelihood of commitment … incremental Cournot equilibrium where both firms make small ex ante investments, which they then scale up if uncertainty is …

outs are more common in sectors with high uncertainty and in more informative markets. …

combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy … costs of ordering firms hold an inventory of intermediates. We show that in response to an uncertainty shock firms optimally … also with disaggregated data back to 1989. Our results suggest a tight link between uncertainty and the cyclical behavior …

housing. After presenting the theory and distilling its key empirical implications, we critically review the empirical …