We estimate the effect of demand and price uncertainty on firms' investment decisions from a panel of manufacturing … firms. Uncertainty measures are derived from firms' subjective qualitative expectations. They are close to their theoretical … counterparts, the variances of future demand and price shocks. We find that demand uncertainty depresses planned and realized …

under uncertainty about the value of environmental services and irreversible development. We study land conversion under … adequate participation in a conservation plan. We analytically determine the impact of uncertainty and optimal policy …

Following the real option literature, whether or not uncertainty shocks drive business cycles depends on the degree of … adjustment frictions. The more plants freeze and remain inactive in response to increased uncertainty, the stronger the adverse … in uncertainty reduces hiring, quits and job creation, while it raises layoffs and job destruction. Our finding suggests …

Using quarterly worker flow data of U.S. establishments, we find that an unexpected increase in uncertainty reduces … hirings and quits, while it raises layoffs. This finding suggests that the real option effect of uncertainty is less important … for employment decisions. Hence plants do not freeze in response to uncertainty shocks. To explain our findings, we …

underlying uncertainty on equilibrium strategies. Two firms contemplate entering a new market where the demand follows a jump …