This paper studies the impact of uncertainty on cross-border investments. We build a data set of firm-level outward … Foreign Direct Investments between 2000 and 2015. We create a time and country varying measure of uncertainty based on the … dispersion of idiosyncratic investment returns. An increase in uncertainty delays cross-border flows to the affected country. Yet …

In this paper we perform a meta-analysis on empirical estimates of the impact between investment and uncertainty. Since … can explain to a large extent why empirical estimates of the investment-uncertainty relationship differ. …

The impact of uncertainty on firms' investment outlays is subject to an ongoing debate. Theory identifies several … channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and … investment likely. On the other hand, the ability of firms to adapt after uncertainty is resolved can make a risky strategy more …

Many commentators argue that uncertainty about tax, spending, monetary and regulatory policy slowed the recovery from … the 2007-2009 recession. To investigate this we develop a new index of economic policy uncertainty (EPU), built on three … components: the frequency of newspaper references to economic policy uncertainty, the number of federal tax code provisions set …

In the context of an Emission Trading Scheme (ETS), we study how uncertainty over the policy parameter affects firms … model the policy uncertainty in the regulator's objective function as well as the market interactions that give rise to an … endogenous price of permits. We find that uncertainty reduces irreversible investment and that the availability of both types of …

We develop new economic policy uncertainty (EPU) indices for Japan from January 1987 onwards, building on the approach … pertaining to the economy, policy matters, and uncertainty. Our overall EPU index co-varies positively with implied volatilities … for Japanese equities, exchange rates and interest rates and with a survey-based measure of political uncertainty. The EPU …

The aim of this paper is to investigate the effect of policy uncertainty on firms' investment decisions. We focus on … Spain for the period 1998-2014. To measure policy-related uncertainty, we use a new macroeconomic indicator constructed for … this country. We find strong evidence that policy uncertainty reduces corporate investment. Furthermore, the heterogeneous …