Showing 1 - 10 of 445
We analyze the impact of trade policy uncertainty on investment in the euro area. Our identification strategy assumes … respect to trade uncertainty. We find that the investment-to-GDP ratio is on average 0.8 percentage points lower for five … that countries that are relatively more dependent on global trade networks exhibit a higher sensitivity of investment with …
Persistent link: https://www.econbiz.de/10011978678
Persistent link: https://www.econbiz.de/10003712224
In this paper I apply firm-level analysis to examine how the Brexit process has affected business investment in the UK … had a considerable and statistically significant negative impact on firm investment in the UK after the referendum. At the … same time, the post-referendum sterling depreciation has likely contributed positively to investment expenditure by more …
Persistent link: https://www.econbiz.de/10011978381
irreversible investment are more exposed to policy uncertainty. In sectors with large irreversible investment EPU has a greater … effect on growth, investment, and leverage. The results are robust to different definitions of investment irreversibility …Uncertainty over economic policy plays a key role in economic outcomes. But evidence and quantification for emerging …
Persistent link: https://www.econbiz.de/10011978593
greater corporate market power. Economic policy uncertainty in 2018 played a relatively small role in dampening investment …There is no consensus on how strongly the Tax Cuts and Jobs Act (TCJA) has stimulated U.S. private fixed investment …. Some argue that the business tax provisions spurred investment by cutting the cost of capital. Others see the TCJA …
Persistent link: https://www.econbiz.de/10012022032
This paper provides empirical support for the view that enhanced economic security fosters private investment and … improved since the mid-1980s; that private investment is mostly influenced by the risk of expropriation, the degree of civil …
Persistent link: https://www.econbiz.de/10014400780
Motivated by the increasing interest in analyzing the links between the financial sector and the real economy, we develop a macro-financial structural model with two novel features. First, we include idiosyncratic and aggregate risk in a tractable general equilibrium model. This allows us to...
Persistent link: https://www.econbiz.de/10012391995
and reduce uncertainty play an important role in promoting investment and economic growth …This paper argues that structural weaknesses may make private investment particularly sensitive to business confidence … relative to other traditional investment drivers and global shocks. It gauges the importance of confidence over recent years in …
Persistent link: https://www.econbiz.de/10012485965
uncertainty using options contracts. VAR analysis shows that the investment response to an uncertainty shock of average magnitude … alternative definitions for investment, uncertainty, and options' maturing time … prices' sharp decline and forecast uncertainty since the end of the commodity super-cycle has rekindled the debate on Chile …
Persistent link: https://www.econbiz.de/10011715577
This paper studies the effect of demographic change on national saving, global interest rates, and international capital flows, focusing on the role of the public pension system. We develop a small open economy overlapping generations model to illustrate the channels through which demographic...
Persistent link: https://www.econbiz.de/10011978553