We estimate the effect of demand and price uncertainty on firms’ investment decisions from a panel of manufacturing firms. Uncertainty measures are derived from firms’ subjective qualitative expectations. They are close to their theoretical counterparts, the variances of future demand and...

Starting from the assumption that firms are more likely to adjust their prices when doing so is more valuable, this paper analyzes monetary policy shocks in a DSGE model with firm-level heterogeneity. The model is calibrated to retail price microdata, and inflation responses are decomposed into...

The chemicals industry is a major contributor to the EU economy in terms of output, value-added, employment, and (net) exports. The sector supplies products to almost all downstream industry sectors and is an important engine for innovation for the wider economy. It plays a key role in...