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 …

This paper analyses the impact of exchange rate uncertainty upon the pattern of investment in different exchange rate … exchange rate regimes indicates that currency volatility exerts only a small influence upon the level of investment spending …

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 …

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 …

In the literature investigating the impact of uncertainty on short-run and long-run investment, most authors have used … general ones and has the advantage of providing closed form solutions for both short-run investment rule and long-run rate of …

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 studies the aggregate implications of microeconomic investment irreversibility and idiosyncratic uncertainty … sector and show the different implications of idiosyncratic and aggregate uncertainty on growth dynamics. …

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 …

persistent decline in investment. Moreover, the territorial dispute has led to persistent pessimism in these firms' expectations … about future sales, which can explain 60% of the overall decline in investment. …