This paper studies the interactions between uncertainty, investment and economic growth. Utilizing panel data for a … possible effects of uncertainty on economic growth and investments. Uncertainty reduces both investment and growth …

We show that an increase in aggregate uncertainty - measured by stock market volatility - reduces productivity growth … uncertainty, firms that are credit constrained switch the composition of investment by reducing productivity-enhancing investment … difference-in-difference approach using productivity growth of 25 industries from 18 advanced economies over the period 1985 …

important but often neglected element of micro- and macroeconomic theory. With the onset of the financial crisis in 2007 and the … investment decisions play with regard to business cycle fluctuations.<br><br>However, the inclusion of real option values in …, requires a fundamental theoretical discussion regarding the modeling of uncertainty and its consequences in economic and growth …

in capital price and levels of aggregate investment and output. I present a model economy where the industry-level policy …-related investment cost is uncertain. Holding the average one-period investment cost constant, policy uncertainty leads to a higher … capital price and subsequently to lower levels of long-run aggregate investment and output. Policy uncertainty also makes …

I present a model economy where policy uncertainty creates short-term bias in investment and leads to a higher capital … price and lower long-run investment and output. I conduct a calibration exercise using a set of industry-level investment … capital price and investment-level differences by a factor of about 3 and for the output-level difference by a factor of about …