uncertainty using options contracts. VAR analysis shows that the investment response to an uncertainty shock of average magnitude … in the sample is strong and persistent: the cumulative fall in investment from trend at a one-year horizon ranges 2 …-5.8 percentage points; and it takes between 11/2 and 2 years for investment to return to its trend level. Empirical ranges depend on …

This paper documents the recent slowdown in investment in India and explores its underlying causes. The sharp … investment deceleration has sparked an intense debate about the role of interest rates, as well as business confidence and … economic policy uncertainty. Our results suggest that while explaining aggregate investment activity better than nominal …

's macroeconomic performance, as reflected by impulse response functions for investment, employment and output. Our study adds to …

irreversible investment are more exposed to policy uncertainty. In sectors with large irreversible investment EPU has a greater … effect on growth, investment, and leverage. The results are robust to different definitions of investment irreversibility …

The global economy is in the midst of an unprecedented slump caused by the coronavirus pandemic. This systemic risk …-pronged approach to investigate the relationship between corporate leverage and fixed investment spending. The empirical analysis …

Recent literature has shown that corporate indebtedness affects firm-level investment behavior but not necessarily … substitute depressed investment by their financially constrained competitors. The increase in investment, primarily driven by … equilibrium effects are unambiguously countercyclical because the increase in investment by unconstrained firms does not crowd out …

We analyze the impact of trade policy uncertainty on investment in the euro area. Our identification strategy assumes … that countries that are relatively more dependent on global trade networks exhibit a higher sensitivity of investment with … respect to trade uncertainty. We find that the investment-to-GDP ratio is on average 0.8 percentage points lower for five …

In this paper I apply firm-level analysis to examine how the Brexit process has affected business investment in the UK … had a considerable and statistically significant negative impact on firm investment in the UK after the referendum. At the … same time, the post-referendum sterling depreciation has likely contributed positively to investment expenditure by more …

Over the past decade, China's growth model has become more reliant on investment and its footprint in global imports … has widened substantially. Several economies within China's supply chain are increasingly exposed to its investment …-led growth and face growing risks from a deceleration in investment in China. This note quantifies potential global spillovers …