develop a macro-financial structural model with two novel features. First, we include idiosyncratic and aggregate risk in a …

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 …

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 1 1\2 and 2 years for investment to return to its trend level. Empirical ranges depend on …

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 …

improved since the mid-1980s; that private investment is mostly influenced by the risk of expropriation, the degree of civil …This paper provides empirical support for the view that enhanced economic security fosters private investment and … liberty, and the degree of independence of the bureaucracy; and that economic growth is affected by the risk of expropriation …

We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store … investment, or a ""volatility trap."" Namely, big savers invest relatively little. In contrast, low volatility of permanent … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …

This paper contributes to the debate on the relationship between public-capital accumulation and private investment in … the past three decades, we study whether public investment in recent years has become more or less complementary to … private investment in comparison to the period before 1980. Second, we construct a novel data-set of quarterly aggregate …

In this paper, we first introduce investment-specific technology (IST) shocks to an otherwise standard international … the relative price of investment to build and estimate these IST processes across the U.S and a ""rest of the world …