We estimate the effect of electorally induced policy uncertainty on investment in the manufacturing sector. Because …, and because the policies relevant to business investment vary systematically by party, uncertainty over the partisan … affiliation of the future governor is a source of political risk to firms considering business investment. More importantly, the …

-level investment over the business cycles from 1977 to 2011. A dynamic econometric specification of capital accumulation including … find that the investment effects of the variables capturing the demand-side of the capital market, i.e. sales growth and … Tobin's q, behave counter-cyclically, whereas this does not hold for the investment effects of supply-side variables such as …