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 …

Recent empirical studies suggest that the negative effects of uncertainty shocks are stronger in recessions than during … argument that the effect of uncertainty on investment depends on the degree of irreversibility. I then show that the degree of … irreversibility increases during recessionary times. Incorporating this fact in a DSGE model with heterogeneous firms and uncertainty …

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 timevarying uncertainty on the economy in a dynamic stochastic general equilibrium model …

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 …

Uncertainty appears to vary strongly over time, temporarily rising by up to 200% around major shocks like the Cuban … Missile crisis, the assassination of JFK and 9/11. This paper offers the first structural framework to analyze uncertainty …. The parameterized model is then used to simulate a macro uncertainty shock, which produces a rapid drop and rebound in …