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 …

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 …

Recent theoretical developments relating to investment under uncertainty have highlighted the importance of … irreversibility for the timing of investment expenditures and their expected returns. This has subsequently stimulated a growing … empirical literature which examines uncertainty and threshold effects of investment behaviour. This paper presents a review of …

In Switzerland a sudden policy uncertainty shock happened in February 2014 with the close and largely unexpected … consequences of this substantial policy uncertainty shock on firms' private fixed investment and employment plans. We find that … those firms that believe that potential growth in Switzerland will deteriorate and those that report that investment …

In this paper we investigate how demand and output price uncertainty affect investment plans of Belgian manufacturing … literature: two reduced form equations and a structural Euler equation. Our results show that uncertainty depresses investment …, uncertainty postpones investment today in favour of investment tomorrow. This effect is stronger for firms with more irreversible …

under uncertainty. The paper focuses on the heterogeneity of firm level investment responses to both demand and supply side … sources of uncertainty. Accordingly, the investment-uncertainty relationship is examined across groups of firms with varying … degrees of investment irreversibility defined on the basis of market structures and access to secondary markets for capital …

This paper investigates the effects of uncertainty on the investment behaviour using firm-level data for a sample of … Belgian manufacturing firms. In general, the results confirm former analysis at the aggregate level, stating that uncertainty … defined. It is shown that uncertainty has mainly an impact on the decision to invest and to a much lesser extent on the amount …

uncertainty significantly reduces managers' expected investment, employment and production in the short and mid run. We collect …This paper studies the dynamic effects of an uncertainty shock on firm expectations. We conduct a survey that confronts … managers from a representative firm sample with a model-consistent uncertainty shock scenario. An exogenous increase in …

investment dynamics. By doing so, we compare five prominent uncertainty proxies put forward in the recent literature: the … type of uncertainty proxy, we document pronounced negative investment responses to uncertainty shocks. We further show that …Investment fell sharply in the euro area after the financial crisis and has not yet returned to pre-crisis levels in …

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