We provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment … dynamic, heterogeneous firms model we show that: (i) investment and entry into export markets is reduced when trade policy is …

Firms expect certain investment expenditures. Firms realize certain investment expenditures. The difference is an … investment surprise. With the help of the IFO Investment Survey for the German manufacturing sector we measure firms …’ (quantitative) investment expectations and firms’ (quantitative) investment realizations on a yearly basis and construct a panel of …

the US. Their work suggests private sector expenditure (investment) on intangibles is about 13% (11%) of US GDP 1998 …-2000, with intangible investment about equal to tangible capital investment. Our work, using a similar method, suggests the UK … private sector spent, in 2004, about £127bn on intangibles, which is about 11% of UK GDP. The implied investment figure is …

This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … the real options literature, which suggests a weaker response of investment to demand shocks at higher levels of … can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock …

’ because the tax liability is offset by a reduction in the post-tax risk of the investment. The Paper argues that this claim is … investment incentives in the presence of risk. Instead it proposes an alternative measure, based on the market value of the pre …

This Paper shows how microeconomic data on investment plans can be used to study the structure of risk faced by firms …. Revisions of investment plans form a martingale, and thus reveal the underlying shocks driving investment. We decompose … revisions in investment plans into micro, sector and aggregate shocks, and exploit stock market data to distinguish between …

product market, concerning in particular entry barriers, are negatively related to investment. The policy implication of our … analysis is clear: regulatory reforms, especially those that liberalize entry, are very likely to spur investment. …