Choi, Sangyup; Furceri, Davide; Huang, Yi; Loungani, Prakash - 2017
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 … uncertainty (Baker et al., 2016) is used instead of stock market volatility as a measure of aggregate uncertainty. …