This paper investigates the effects of monetary policy on firms' investment behaviour. The analysis relies on a …. First, we estimate a reduced-form investment equation derived from the neo-classical model, augmented by cash flow. This …

In this paper we investigate how demand and output price uncertainty affect investment plans of Belgian manufacturing … survey and investment plans from the half-yearly investment survey. Using investment plans instead of realised investment … features of the decision formation process and, therefore, it is most closely related to economic theory. Business investment …

We estimate the effect of demand and price uncertainty on firms' investment decisions from a panel of manufacturing … investment, while price uncertainty is insignificant. This is consistent with the behavior of monopolistic firms with … irreversible capital (Caballero, 1991). Further, firms revise their investment plans very little. They may do so in response to new …