Mecikovsky, Ariel M.; Meier, Matthias - 2014 - Preprint, This version: August 28, 2014, (Preliminary version)
Following the real option literature, whether or not uncertainty shocks drive business cycles depends on the degree of … adjustment frictions. The more plants freeze and remain inactive in response to increased uncertainty, the stronger the adverse … in uncertainty reduces hiring, quits and job creation, while it raises layoffs and job destruction. Our finding suggests …
