Does increased policy uncertainty dampen investment plans of firms? We provide direct evidence on this question by … induced policy uncertainty have revised their investment plans differently from those that did not perceive an increase in … uncertainty. We find strong evidence that an increase in policy uncertainty does lead firms to reduce their investment plans. As …

-level uncertainty and imperfect information over their life cycle. We find that firms make non-negligible and positively correlated … informed. Moreover, young firms tend to wait long before entering or exiting the market faced with high uncertainty about their …

how these beliefs shape investment decisions measured in administrative account data. Individuals’ beliefs exhibit …

the effects of both tax base and tax rate uncertainty, the investment's tax payment is modelled as a stochastic process …. Increased tax uncertainty has an ambiguous impact on investment timing. The view that tax uncertainty depresses real investment …Tax legislation, fiscal authorities, and tax courts create tax uncertainty by frequent tax reforms and various …

wedge between the discount rate guiding investment decisions and the standard Jorgensonian user cost (adjusted for risk). We …When investment is irreversible, theory suggests that firms will be "reluctant to invest." This reluctance creates a … we label the irreversibility premium. Estimates are based on panel data for the period 1980-2001. The large dataset …

-level uncertainty and imperfect information over their life cycle. We find that firms make non-negligible and positively correlated … informed. Moreover, young firms tend to wait long before entering or exiting the market faced with high uncertainty about their …

volatility generates investment and growth opportunities in poor countries. But high uncertainty and low overprecision slow …We study business uncertainty in high- versus low-volatility environments by surveying over 31,000 managers across 41 … countries. We elicit subjective probability distributions for future own-firm sales and measure firm-level uncertainty with …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief … shows that macroeconomic risk acts as an important deterrent to investments. …

How does economic uncertainty affect the impact of tax policy? We exploit a natural experiment in which two very … similar investment subsidies were implemented in the same country, two years apart: once during a period of economic stability …, and once during a period of very high uncertainty. Exploiting sharp discontinuities in eligibility and using rich …

shock. Our estimated model uncovers a central role for investment in the transmission mechanism of monetary policy, as high … MPCs amplify the investment response in the data. This force also generates a procyclical response of consumption to … investment shocks, leading our model to infer a central role for these shocks as a source of business cycles …