investment in irreversible goods. This paper characterizes this problem in general equilibrium with technology shocks, additive … output shocks and shocks to the marginal efficiency of investment. Uncertainty is associated with the variance of these … random variables, and irreversibility is introduced by a non-negativity constraint on investment. I find that irreversibility …

-level investment is procyclical. We show that a heterogeneous-firm RBC model with quantitatively realistic countercyclically disperse … state investment rate distribution, produces investment dispersion that positively comoves with the cycle, with a …-sectional firm dynamics ; lumpy investment ; countercyclical risk ; aggregate shocks ; idiosyncratic shocks ; heterogeneous firms …

-varying uncertainty, highlighted in the literature. -- Ss model ; RBC model ; lumpy investment ; countercyclical risk ; aggregate shocks …

effect of time-varying uncertainty, highlighted in the literature. -- Ss model ; RBC model ; lumpy investment …

of firm-level investment is procyclical. We show that a heterogeneousfirm RBC model with quantitatively realistic … of the steady state investment rate distribution, produces investment dispersion that positively comoves with the cycle … ; cross-sectional firm dynamics ; lumpy investment ; countercyclical risk ; aggregate shocks ; idiosyncratic shocks …

prices. An increase in the risk of disaster leads to a collapse of investment and a recession, with no current or future … business cycle dynamics, especially sharp downturns in investment and output such as the last quarter of 2008. This is … risk premia has an important effect on investment and output …

This paper investigates how cross-sectional micro-uncertainty influences the investment of small and large firms and … discusses the aggregate implications of the heterogeneity in their investment decisions. Empirically, we find that large firms … show less investment decline in times of heightened uncertainty. We provide empirical evidence for the underlying driver of …

How does uncertainty affect the costs of raising finance in the bond market and via bank loans? Empirically, this paper … finds that heightened uncertainty is accompanied by an increase in corporate bond yields and a decrease in bank lending …