Recent empirical studies suggest that the negative effects of uncertainty shocks are stronger in recessions than during … argument that the effect of uncertainty on investment depends on the degree of irreversibility. I then show that the degree of … irreversibility increases during recessionary times. Incorporating this fact in a DSGE model with heterogeneous firms and uncertainty …

We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic … uncertainty is robustly countercyclical, rising sharply during recessions, particularly during the Great Recession of 2007 …-2009. Second, we quantify the impact of timevarying uncertainty on the economy in a dynamic stochastic general equilibrium model …

This paper investigates how firms manage their cash savings, financing, and investment when aggregate uncertainty is … time-varying. I develop and estimate a dynamic model featuring aggregate uncertainty shocks, costly external financing … to wait, both of which interact with time-varying uncertainty and are reinforced by state-dependent risk premia. My model …

Uncertainty faced by individual firms appears to be heterogeneous. In this paper, I construct new empirical measures of … firm-level uncertainty using data from the I/B/E/S and Compustat. These new measures reveal persistent differences in the … degree of uncertainty facing individual firms not reflected by existing measures. Consistent with existing measures, I find …

This paper shows that, contrary to common beliefs, the real options effect of uncertainty plays no role in the long run …

constraints, and oil and gas production specificities (i.e., production uncertainty, production flexibility, and price …

We estimate the effect of demand and price uncertainty on firms' investment decisions from a panel of manufacturing … firms. Uncertainty measures are derived from firms' subjective qualitative expectations. They are close to their theoretical … counterparts, the variances of future demand and price shocks. We find that demand uncertainty depresses planned and realized …