explore corporate data to investigate how economic uncertainty affected investment, dividend payouts and cash holdings, based … of England. These data demonstrate that heightened economic uncertainty lowered investment even after controlling for … investment opportunities, sales growth, and the firm's own stock volatility. Economic uncertainty also explains the rise in cash …

rate of investment. This is proven for both the standard investment model with Cobb-Douglas production and Brownian motion … options and irreversibility, however, are shown to play an important role in the short run dynamics of investment and labor … demand. Specifically, they reduce the short run response of investment and hiring to current demand shocks, and lead to a …