Firms’ investment decisions in response to demand and price uncertainty

References

• Abel , AB . 1983 . Optimal investment under uncertainty . American Economic Review , 73 : 228 – 33 .
   Web of Science ®Google Scholar
• Abel , AB and Eberly , JC . 1994 . A unified model of investment under uncertainty . American Economic Review , 84 : 1369 – 84 .
   Web of Science ®Google Scholar
• Abel , AB and Eberly , JC . 1997 . An exact solution for the investment and value of a firm facing uncertainty, adjustment costs, and irreversibility . Journal of Economic Dynamics and Control , 21 : 831 – 52 .
   Web of Science ®Google Scholar
• Abel , AB and Eberly , JC . 1999 . The effect of irreversibility and uncertainty on capital accumulation . Journal of Monetary Economics , 44 : 339 – 77 .
   Web of Science ®Google Scholar
• Abel , AB , Dixit , AK , Eberly , JC and Pindyck , RS . 1996 . Options, the value of capital and investment . Quarterly Journal of Economics , 111 : 753 – 77 .
   Web of Science ®Google Scholar
• Arellano , M and Bover , O . 1995 . Another look at the instrumental variable estimation of error-components models . Journal of Econometrics , 68 : 29 – 51 .
   Web of Science ®Google Scholar
• Bloom , N , Bond , S and Van Reenen , J . 2007 . Uncertainty and company investment dynamics . Review of Economic Studies , 74 : 391 – 415 .
   Web of Science ®Google Scholar
• Blundell , R and Bond , S . 1998 . Initial conditions and moment restrictions in dynamic panel data models . Journal of Econometrics , 87 : 115 – 43 .
   Web of Science ®Google Scholar
• Bo , H . 2002 . Idiosyncratic uncertainty and firm investment . Australian Economic Papers , 41 : 1 – 14 .
   Google Scholar
• Bomberger , WA . 1996 . Disagreement as a measure of uncertainty . Journal of Money, Credit and Banking , 28 : 381 – 92 .
   Web of Science ®Google Scholar
• Bond , S and Cummins , JG . 2004 . Uncertainty and investment: an empirical investigation using data on analysts’ profit forecasts Board of Governors of the Federal Reserve System Finance and Economics Discussion Series, 2004-20
   Google Scholar
• Bond , S , Elston , J , Mairesse , J and Mulkay , B . 2003 . Financial factors and investment in Belgium, France, Germany and the UK: a comparison using company panel data . The Review of Economics and Statistics , 85 : 153 – 65 .
   Web of Science ®Google Scholar
• Bulan , LT . 2005 . Real options, irreversible investment and firm uncertainty: new evidence from US firms . Review of Financial Economics , 14 : 255 – 79 .
   Google Scholar
• Butzen , P , Fuss , C and Vermeulen , Ph . 2002 . The interest rate and credit channels in Belgium: an investigation with micro-level firm data . Brussels Economic Review , 45 : 5 – 35 .
   Google Scholar
• Butzen , P , Fuss , C and Vermeulen , Ph . 2003 . “ The impact of uncertainty on investment plans ” . In Firms’ Investment and Finance Decisions: Theory and Empirical Methodology , Edited by: Butzen , P and Fuss , C . 227 – 45 . Cheltenham, , UK : Edward Elgar .
   Google Scholar
• Caballero , R . 1991 . On the sign of the investment-uncertainty relationship . American Economic Review , 81 : 279 – 88 .
   Web of Science ®Google Scholar
• Carlson , JA and Parkin , M . 1975 . Inflation expectations . Economica , 42 : 123 – 38 .
   Web of Science ®Google Scholar
• Carruth , A , Dickerson , A and Henley , A . 2000 . What do we know about investment under uncertainty? . Journal of Economic Surveys , 14 : 119 – 53 .
   Web of Science ®Google Scholar
• Caselli , P , Pagano , P and Schivardi , F . 2003 . Uncertainty and the slowdown of capital accumulation in Europe . Applied Economics , 35 : 79 – 89 .
   Web of Science ®Google Scholar
• Dixit , A and Pindyck , R . 1994 . Investment under Uncertainty , Princeton, , US : Princeton University Press .
   Google Scholar
• Driver , C , Imai , K , Temple , P and Urga , G . 2004 . The effect of uncertainty on UK investment authorisation: homogenous vs heterogeneous estimators . Empirical Economics , 29 : 115 – 28 .
   Google Scholar
• Fazzari , S , Hubbard , GR and Petersen , BC . 1988 . Financing constraints and corporate investment . Brooking Papers on Economic Activity , 1 : 141 – 95 .
   Google Scholar
• Fedderke , J . 2004 . Investment in fixed capital stock: testing for the impact of sectoral and systemic uncertainty . Oxford Bulletin of Economics and Statistics , 66 : 165 – 87 .
   Web of Science ®Google Scholar
• Ghosal , V and Loungani , P . 1996 . Product market competition and the impact of price uncertainty on investment: some evidence from US manufacturing industries . The Journal of Industrial Economics , 44 : 217 – 28 .
   Web of Science ®Google Scholar
• Ghosal , V and Loungani , P . 2000 . The differential impact of uncertainty on investment in small and large businesses . Review of Economics and Statistics , 82 : 338 – 49 .
   Web of Science ®Google Scholar
• Giordani , P and Söderlind , P . 2003 . Inflation forecast uncertainty . European Economic Review , 47 : 1037 – 59 .
   Web of Science ®Google Scholar
• Guiso , L and Parigi , G . 1999 . Investment and demand uncertainty . Quarterly Journal of Economics , 114 : 185 – 227 .
   Web of Science ®Google Scholar
• Hartman , R . 1972 . The effects of price and cost uncertainty on investment . Journal of Economic Theory , 5 : 258 – 66 .
   Web of Science ®Google Scholar
• Henley , A , Carruth , A and Dickerson , A . 2003 . Industry-wide versus firm-specific uncertainty and investment: British company panel data evidence . Economics Letters , 78 : 87 – 2 .
   Web of Science ®Google Scholar
• Leahy , JV and Whited , TM . 1996 . The effect of uncertainty on investment: some stylized facts . Journal of Money, Credit, and Banking , 28 : 65 – 83 .
   Web of Science ®Google Scholar
• Mc Donald , R and Siegel , D . 1986 . The value of waiting to invest . Quarterly Journal of Economics , 101 : 707 – 28 .
   Web of Science ®Google Scholar
• Nardo , M . 2003 . The quantification of qualitative survey data: a critical assessment . Journal of Economic Surveys , 17 : 645 – 68 .
   Web of Science ®Google Scholar
• Patillo , C . 1998 . Investment, uncertainty and irreversibility in Ghana . IMF Staff Papers , 45 : 522 – 53 .
   Google Scholar
• Pesaran , MH . 1984 . “ Expectations formation and macroeconomic modelling ” . In Contemporary Macroeconomic Modelling , Edited by: Malgrange , P and Muet , PA . 27 – 55 . Oxford : Blackwell .
   Google Scholar
• Pesaran , MH . 1987 . The Limits to Rational Expectations , Oxford : Blackwell .
   Google Scholar
• Pindyck , RS . 1993 . A note on competitive investment under uncertainty . The American Economic Review , 83 : 273 – 7 .
   Web of Science ®Google Scholar
• Price , S . 1995 . Aggregate uncertainty, capacity utilisation and manufacturing investment . Applied Economics , 27 : 147 – 54 .
   Web of Science ®Google Scholar
• Temple , P , Urga , G and Driver , CK . 2001 . The influence of uncertainty on investment in the UK: a macro or micro phenomenon? . Scottish Journal of Political Economy , 48 : 361 – 82 .
   Web of Science ®Google Scholar
• Theil , H . 1952 . On the time shape of economic micro-variables and the Munich business test . Review of the International Statistical Institute , 20 : 105 – 20 .
   Google Scholar
• von Kalckreuth , U . 2003 . Exploring the role of uncertainty for corporate investment decisions in Germany . Swiss Journal of Economics and Statistics , 139 : 173 – 206 .
   Google Scholar
• Windmeijer , F . 2004 . A finite sample correction for the variance of linear two-step GMM estimators . Journal of Econometrics , 126 : 25 – 51 .
   Web of Science ®Google Scholar