increase their liquidity ratios when macroeconomic uncertainty or idiosyncratic uncertainty increases. …This paper investigates the link between the optimal level of non-financial firms? liquid assets and uncertainty. We … develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio …

increase their liquidity ratios when macroeconomic uncertainty or idiosyncratic uncertainty increases. …This paper investigates the link between the optimal level of non-financial firms' liquid assets and uncertainty. We … develop a partial equilibrium model of precautionary demand for liquid assets showing that firms alter their liquidity ratio …

uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as macroeconomic uncertainty … uncertainty increases, firms decrease their levels of leverage. Furthermore, we demonstrate that our results are robust with …

uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as macroeconomic un-certainty … macroeconomic uncertainty increases, firms decrease their levels of leverage. Furthermore, we demonstrate that our results are …

uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as macroeconomic uncertainty … uncertainty increases, firms decrease their levels of leverage. Furthermore, we demonstrate that our results are robust with …

-level uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as industry-level uncertainty … increases the firm will increase its optimal level of liquidity. We test this hypothesis using a panel of German firms drawn … from the Bundesbank's balance sheet database and show that greater uncertainty at the industry level causes firms to …

-level uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as industry-level uncertainty … increases the firm will increase its optimal level of liquidity. We test this hypothesis using a panel of German firms drawn … from the Bundesbank's balance sheet database and show that greater uncertainty at the industry level causes firms to …

-level uncertainty. We develop a structural model of a firm's value maximization problem that predicts that as industry-level uncertainty … increases the firm will increase its optimal level of liquidity. We test this hypothesis using a panel of German firms drawn … from the Bundesbank's balance sheet database and show that greater uncertainty at the industry level causes firms to …

A growing body of evidence suggests that uncertainty is counter cyclical, rising sharply in recessions and falling in … booms. But what is the causal relationship between uncertainty and growth? To identify this we construct cross country panel …

We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic … uncertainty is robustly countercyclical, rising sharply during recessions, particularly during the Great Recession of 2007 …-2009. Second, we quantify the impact of time-varying uncertainty on the economy in a dynamic stochastic general equilibrium model …