The dynamics of investment under uncertainty.
We derive robust predictions on the effects of uncertainty on short-run investment dynamics in a broad class of models with (partial) irreversibility. When their environments becomes more uncertain, firms become more cautious and less responsive to demand shocks. This result contrasts with the long-...
| Main Authors: | , , |
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| Format: | Working paper |
| Language: | English |
| Published: |
IFS
2001
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