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We estimate the effect of electorally induced policy uncertainty on investment in the manufacturing sector. Because …, and because the policies relevant to business investment vary systematically by party, uncertainty over the partisan … affiliation of the future governor is a source of political risk to firms considering business investment. More importantly, the …
Persistent link: https://www.econbiz.de/10012995873
Persistent link: https://www.econbiz.de/10010528331
We estimate the impact on US non-residential fixed investment of permanent and temporary inflation uncertainty. We find … that while both have a negative effect, temporary uncertainty is more important for investment. This study has implications …
Persistent link: https://www.econbiz.de/10013045118
Persistent link: https://www.econbiz.de/10012196847
We estimate the effect of electorally induced policy uncertainty on investment in the manufacturing sector. Because …, and because the policies relevant to business investment vary systematically by party, uncertainty over the partisan … affiliation of the future governor is a source of political risk to firms considering business investment. More importantly, the …
Persistent link: https://www.econbiz.de/10011451061
systemic risk is positively associated with the firm-level investment ratio after controlling for a large set of country … risk on corporate investment, suggesting that more financially constrained firms experience a larger effect of bank … systemic risk on corporate investment than less financially constrained firms …
Persistent link: https://www.econbiz.de/10012965541
This paper explores the existence and importance of financing constraints for R&D investments in large EU and US manufacturing companies over the 2000-2007 period. The main results obtained by estimating error-correction equations suggest that the sensitivity of R&D investments to cash flow...
Persistent link: https://www.econbiz.de/10011980362
Using firm level information on the world leading R&D investors and employing a system GMM estimation, this paper investigates how sensitive R&D investments are to cash flow movements, which would be suggestive of financial constraints. The analysis confirms that over the last decade the R&D...
Persistent link: https://www.econbiz.de/10013021349
cost of capital on investment. Following the method of Auerbach and Hassett (1991), using cross-sectional data we find that … the user cost is associated with higher rates of investment consistent with previous studies. BEA asset types with greater … significant increases in their investment rates several years after the tax reform. Specifically, we find the magnitude of a 1 …
Persistent link: https://www.econbiz.de/10015421864
This paper highlights the role of macroeconomic and financial uncertainty in predicting US recessions. In …. Macroeconomic uncertainty has the highest predictive power up to 7 months ahead and becomes the second best predictor --- after the … yield curve slope --- at longer horizons. Using data up to end-2018, out-of-sample forecasts show that uncertainty …
Persistent link: https://www.econbiz.de/10014092438