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 …

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 … investment response to demand shocks. This implies the responsiveness of firms to any given policy stimulus may be much lower in …

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 …

This paper uses a new data-set to examine how internal capital markets and foreign ownership affect investment. Our … data allow us to compare investment behaviour of listed subsidiaries with stand-alone firms while controlling for … investment opportunities of parent and subsidiary firms. We evaluate how the size of ownership and the geographical proximity of …

consumption being higher than output, and negative comovement in aggregate investment and employment. This paper shows that …