integration, as the relative price of foreign goods falls and households increase their consumption of imported goods. In addition …

irreversible investments following an increase in the uncertainty of their environment is not empirically well-known. This paper … estimates firms' responsiveness to changes in uncertainty using detailed data on oil well drilling in Texas and expectations of … future oil price volatility derived from the NYMEX futures options market. Using a dynamic model of firms' investment problem …

We develop a theoretical framework to explain firms' offshoring decisions in the presence of uncertainty. This model … sharp prediction of the prevalence of offshoring in a given industry: The propensity of firms to source intermediate inputs … particularly pronounced in industries with higher volatility. Combining industry-level data on the U.S. offshoring intensity with …