Bloom, Nicholas; Bond, Stephen Roy; Van Reenen, John - C.E.P.R. Discussion Papers - 2003
This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by … uncertainty, as firms place a greater value on the option to wait. Using simulated data we show that this more cautious behaviour … can be detected as a smaller impact of sales growth on investment for firms facing higher uncertainty. Using a stock …