The ifo Investment Survey asks firms in the German manufacturing sector about the importance of sales, technological … factors, finance, return expectations, and macroeconomic policy for their investment activity in a given year. We show that … these subjective investment determinants 1) capture economically what their labels suggest, and 2) have strong explanatory …

implement, and captures respondents' excess confidence in their own judgment. Our results show that, in line with theoretical … predictions, an excessive degree of confidence in one's judgment is correlated with lower portfolio diversification, larger stock …