Investment fell sharply in the euro area after the financial crisis and has not yet returned to pre-crisis levels in … investment dynamics. By doing so, we compare five prominent uncertainty proxies put forward in the recent literature: the … type of uncertainty proxy, we document pronounced negative investment responses to uncertainty shocks. We further show that …

production. Along with an increase in valuations, the model can generate a joint decline in investment, productivity, risk …. We propose a theory in which differences in preferences, productivity, and risk exposure generate gains from trade, but … these gains are not fully realized because some large agents internalize their impact on asset prices. In equilibrium, risk …

From a theoretical point of view, uncertainty may have an impact on investment by different channels and in different … paper analyzes the relation between macroeconomic uncertainty and total investment in Romania over the period 2000-2008. As … conditional heteroskedastic (GARCH) models. These measures are introduced as a linear and a quadratic term in the investment …

, investment irreversibility, and time-varying risk premia. In my model, firms have a precautionary-savings motive and real options …This paper investigates how firms manage their cash savings, financing, and investment when aggregate uncertainty is … to wait, both of which interact with time-varying uncertainty and are reinforced by state-dependent risk premia. My model …

We estimate the impact on US non-residential fixed investment of permanent and temporary inflation uncertainty. We find … that while both have a negative effect, temporary uncertainty is more important for investment. This study has implications …

turn affect rent. By extending the theory of investment under uncertainty, we model the renter's decision to buy a house …

' investment decisions, which subsequently justify firms' financial constraints. Using a sample of Chinese listed firms, the study … carefully to avoid turbulence and friction in firms’ investment decisions …

We investigate the analytical and empirical linkages between cash flow, uncertainty, and firms' capital investment … and S&P 500 index returns along with a CAPM-based risk measure. Our results indicate that even in the presence of … important firm-specific variables, uncertainty is an important determinant of firms' investment behavior. Depending on the …

Instability and uncertainty are important factors in Africa's poor investment record over the past two decades. A … investment projects. That literature shows that if fixed investment projects are costly or impossible to reverse, uncertainty can … become a powerful deterrent to investment.Serven reviews the literature on irreversible investment to identify the …

In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …