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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 …
Persistent link: https://www.econbiz.de/10012992624
Credit risk may be warehoused by choice, or because of limited hedging possibilities. Credit risk warehousing increases capital requirements and leaves open risk. Open risk must be priced in the physical measure, rather than the risk neutral measure, and implies profits and losses. Furthermore...
Persistent link: https://www.econbiz.de/10013033223
levels of uncertainty. The study recommends that to create a good economic climate, to attract investment and boost … businesses use information around them to form judgements about what might happen in the future. The rise in uncertainty might be … measure macroeconomic uncertainty in Zimbabwe, using stock market indices - industrial index and mining index - for the period …
Persistent link: https://www.econbiz.de/10012866688
in aggregate demand. As the investor is risk averse, volatility of aggregate demand reduces investment. Government … injects monetary noise to reduce the volatility in aggregate demand and induce higher investment. The monetary noise clouds … consumption spending, the investor increases investment …
Persistent link: https://www.econbiz.de/10014158665
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 …
Persistent link: https://www.econbiz.de/10013315501
immediate investment and ignoring policy uncertainty …Based on panel data of 214 licenses to construct small hydropower plants, we examine whether uncertainty with respect … real options investment rule, and uncertain climate policy decisions delayed their investment rate; and (2) investors …
Persistent link: https://www.econbiz.de/10013066824
This paper explores how changes in macroeconomic uncertainty have affected the decision to reply to the European … Central Bank's Survey of Professional Forecasters (ECB's SPF). The results suggest that higher (lower) aggregate uncertainty … more individual uncertainty seem to have a lower likelihood of replying to the survey. Consequently, measures of …
Persistent link: https://www.econbiz.de/10011555273
This paper explores how changes in macroeconomic uncertainty have affected the decision to participate in the European …. First, a time-series analysis explores if changes in measures of uncertainty over time have led to changes in aggregate … response rates. And second, a discrete-choice model for panel data is estimated to test if changes in uncertainty measures have …
Persistent link: https://www.econbiz.de/10011605852
This paper explores how changes in macroeconomic uncertainty have affected the decision to reply to the European … Central Bank's Survey of Professional Forecasters (ECB's SPF). The results suggest that higher (lower) aggregate uncertainty … more individual uncertainty seem to have a lower likelihood of replying to the survey. Consequently, measures of …
Persistent link: https://www.econbiz.de/10011492784
major choice, with which we estimate the relative importance of earnings and earnings uncertainty on the choice of college …
Persistent link: https://www.econbiz.de/10010287092