We model economic policy uncertainty (EPU) in the four largest euro area countries by applying machine learning … components of overall EPU endogenously for a wide range of languages. The uncertainty indices computed from January 2000 to May … structural vector autoregression model to study the relationship between different sources of uncertainty and investment in …

We present a novel argument demonstrating that when trade is characterized by uncertainty the comparative advantages …

The willingness to trust human receivers is compared to the inclination to take lottery risk in six distinct scenarios … pure-risk lottery allocation, and paired comparisons reveal that investors sacrifice 5% of the expected payoff to trust … complement the accumulating evidence regarding physiological differences between trust and risk, in addition suggesting that the …

We study the trading behavior of short sellers in the presence of economic policy uncertainty (EPU). Daily short … interest under high political uncertainty is from shorting stocks characterized by higher mispricing, greater policy …

This research examines the relations between government economic policy uncertainty and firm cash holdings and the … value of cash. We find robust evidence that policy uncertainty is positively related to corporate cash holdings due to firms …' precautionary motives and investment delays. Policy uncertainty adversely affects the value of cash to shareholders of firms with …

We develop new economic policy uncertainty (EPU) indices for Japan from January 1987 onwards, building on the approach … pertaining to the economy, policy matters, and uncertainty. Our overall EPU index co-varies positively with implied volatilities … for Japanese equities, exchange rates and interest rates and with a survey-based measure of political uncertainty. The EPU …

measures of uncertainty tend to also capture noise in the reporting system, which has a negative relation with investors …' response to new information. The second explanation is that when investors face high levels of overall uncertainty, earnings … announcements do little to resolve that uncertainty. We provide evidence consistent with the latter explanation. We develop two …

The preliminary evidence in the literature suggests that changes in uncertainty have a role in shaping the U ….S. economic cycle. But what is effectively measured by the different available indicators of uncertainty still remains an … "uncertain" issue. This paper has two aims: (i) to introduce a new uncertainty indicator (GT) based on Internet searches; and (ii …

The aim of this paper is to investigate the effect of policy uncertainty on firms' investment decisions. We focus on … Spain for the period 1998-2014. To measure policy-related uncertainty, we use a new macroeconomic indicator constructed for … this country. We find strong evidence that policy uncertainty reduces corporate investment. Furthermore, the heterogeneous …

We construct a new index of uncertainty — the World Uncertainty Index (WUI) — for 143 individual countries on a … quarterly basis from 1996 onwards. This is defined using the frequency of the word “uncertainty” in the quarterly Economist …, El Niño, European border crisis, UK Brexit vote and the 2016 US election. Uncertainty spikes tend to be more synchronized …