Uncertainty and Company Investment Dynamics: Empirical Evidence for UK Firms.
This Paper investigates the empirical relationship between uncertainty and investment dynamics. This is motivated by the real options literature, which suggests a weaker response of investment to demand shocks at higher levels of uncertainty, as firms place a greater value on the option to wait. Usi...
| Main Authors: | , , |
|---|---|
| Format: | Working paper |
| Language: | English |
| Published: |
CEPR
2003
|