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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/10011978678
We study the effects of permanent and temporary income shocks on precautionary saving and investment in a ""store … investment, or a ""volatility trap."" Namely, big savers invest relatively little. In contrast, low volatility of permanent … shocks leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks …
Persistent link: https://www.econbiz.de/10014396572
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/10011715577
irreversible investment are more exposed to policy uncertainty. In sectors with large irreversible investment EPU has a greater …Uncertainty over economic policy plays a key role in economic outcomes. But evidence and quantification for emerging … policy uncertainty (EPU) index for Turkey and assess how it affects Turkish firms. To disentangle the issues of endogeneity …
Persistent link: https://www.econbiz.de/10011978593
improved since the mid-1980s; that private investment is mostly influenced by the risk of expropriation, the degree of civil …This paper provides empirical support for the view that enhanced economic security fosters private investment and … liberty, and the degree of independence of the bureaucracy; and that economic growth is affected by the risk of expropriation …
Persistent link: https://www.econbiz.de/10014400780
, higher uncertainty raises the hurdle level that triggers investment, and uncertainty has a negative effect on investment …Panel data on Ghanaian manufacturing firms are used to test predictions from models of irreversible investment under … uncertainty. Information on the entrepreneur’s subjective probability distribution over future demand for the firm’s products is …
Persistent link: https://www.econbiz.de/10014403297
and reduce uncertainty play an important role in promoting investment and economic growth …This paper argues that structural weaknesses may make private investment particularly sensitive to business confidence … relative to other traditional investment drivers and global shocks. It gauges the importance of confidence over recent years in …
Persistent link: https://www.econbiz.de/10012485965
In this paper I apply firm-level analysis to examine how the Brexit process has affected business investment in the UK … had a considerable and statistically significant negative impact on firm investment in the UK after the referendum. At the … same time, the post-referendum sterling depreciation has likely contributed positively to investment expenditure by more …
Persistent link: https://www.econbiz.de/10011978381
greater corporate market power. Economic policy uncertainty in 2018 played a relatively small role in dampening investment …There is no consensus on how strongly the Tax Cuts and Jobs Act (TCJA) has stimulated U.S. private fixed investment …. Some argue that the business tax provisions spurred investment by cutting the cost of capital. Others see the TCJA …
Persistent link: https://www.econbiz.de/10012022032
Abstract What do climate change, global financial crises, pandemics, and fragility and conflict have in common? They are all examples of global risks that can cross geographical and generational boundaries and whose mismanagement can reverse gains in development and jeopardize the well-being of...
Persistent link: https://www.econbiz.de/10014411688