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economic policy uncertainty. Our results suggest that while explaining aggregate investment activity better than nominal …This paper documents the recent slowdown in investment in India and explores its underlying causes. The sharp … investment deceleration has sparked an intense debate about the role of interest rates, as well as business confidence and …
Persistent link: https://www.econbiz.de/10013055667
uncertainty using options contracts. VAR analysis shows that the investment response to an uncertainty shock of average magnitude … alternative definitions for investment, uncertainty, and options' maturing time … prices' sharp decline and forecast uncertainty since the end of the commodity super-cycle has rekindled the debate on Chile …
Persistent link: https://www.econbiz.de/10012966554
We analyze the impact of trade policy uncertainty on investment in the euro area. Our identification strategy assumes … respect to trade uncertainty. We find that the investment-to-GDP ratio is on average 0.8 percentage points lower for five … that countries that are relatively more dependent on global trade networks exhibit a higher sensitivity of investment with …
Persistent link: https://www.econbiz.de/10012892915
The spread of the COVID-19 pandemic and government interventions have reshaped economic activity with abrupt changes in household consumption behavior across the world. This paper provides an empirical investigation of how the COVID-19 vaccine rollout has affected consumer spending at daily...
Persistent link: https://www.econbiz.de/10014348907
This paper studies how uncertainty about fundamentals contributed to currency crises from both a theoretical and an …
Persistent link: https://www.econbiz.de/10013317982
Recent literature has shown that corporate indebtedness affects firm-level investment behavior but not necessarily … substitute depressed investment by their financially constrained competitors. The increase in investment, primarily driven by … equilibrium effects are unambiguously countercyclical because the increase in investment by unconstrained firms does not crowd out …
Persistent link: https://www.econbiz.de/10014348807
that depreciations boost profits, investment, and sales of firms that are more financially-constrained and have higher … reducing real wages, thereby spurring investment. We show that these effects on firm performance are enduring, including in the …
Persistent link: https://www.econbiz.de/10012927468
Total investment in Denmark has experienced a sharp slowdown following the globalfinancial crisis. This slowdown has … in output has contributed to investment slowdown, consistent withpredictions of the accelerator model. However, other …
Persistent link: https://www.econbiz.de/10012912502
We show that the response of firm-level investment to real exchange rate movements varies depending on the production … structure of the economy. Firms in advanced economies and in emerging Asia increase investment when the domestic currency … well as some advanced economies with a low degree of structural economic complexity, corporate investment increases when …
Persistent link: https://www.econbiz.de/10012913927
capital constrained, uncertainty in asset quality and rollover risk create a negative externality that spills over to the real …
Persistent link: https://www.econbiz.de/10013024428