We survey recent microeconometric research on investment and employment that has used panel data on individual firms or … theory of the demand for capital and labour, on which most of the econometric models of investment and employment that we … of adjustment, which have played a prominent role especially in the microeconometric literature on investment. With …

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 …

We derive robust predictions on the effects of uncertainty on short run investment dynamics in a broad class of models … of the capital stock is ambiguous. An investment model is estimated to test these theoretical predictions using a panel …

can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock …This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … the real options literature, which suggests a weaker response of investment to demand shocks at higher levels of …

long-run growth by increasing the profit from innovation. In the short run, factors of production must be reallocated … from a baseline OECD growth rate of 2% we find that trade integration with low-wage countries in the decade around China …’s WTO accession could have increased long-run growth to 2.4%. There is an additional short-run trapped factors effect …

We derive robust predictions on the effects of uncertainty on short run investment dynamics in a broad class of models … of the capital stock is ambiguous. An investment model is estimated to test these theoretical predictions using a panel …

growth. With trapped factors, firms that face more import competition do relatively more innovation. The extra innovation …