with cash, for which no perfect market existed: the presence of sunk costs, real uncertainty, long time lags, adverse …

This paper explores the sources of uncertainty that cause firms to revise their capital investment plans and the stock … market to revise its valuation of those firms. A simple method is developed to decompose the uncertainty governing revisions … idiosyncratic uncertainty, but common disturbances are more important for movements in the stock market rate of return. …

This paper investigates the relationship between infation uncertainty and investment using a panel of loan-level data … aggregates. The data show that periods of increased inflation uncertainty are associated with substantial reductions in total … models of investment under uncertainty. …

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 …