Firms' investment decisions in response to demand and price uncertainty

被引：28
|
作者：
Fuss, Catherine [2 ,3 ]
Vermeulen, Philip [1 ]
机构：
[1] European Cent Bank, D-60311 Frankfurt, Germany
[2] Natl Bank Belgium, B-1000 Brussels, Belgium
[3] Univ Libre Bruxelles, B-1050 Brussels, Belgium
来源：
APPLIED ECONOMICS | 2008年 / 40卷 / 18期
关键词：
D O I：
10.1080/00036840600959909
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
We investigate the effect of demand and price uncertainty on firms' planned and realized investment from a panel of manufacturing firms. Uncertainty measures are derived from firms' own expectations about demand and prices and firm's sales. We find that demand uncertainty at the time of planning depresses planned and subsequent realized investment. Firms do not revise their plans due to demand uncertainty at the time of spending, suggesting that reducing demand uncertainty will only have lagged effects on investment. We do not find any effect of price uncertainty. Our results are consistent with the behaviour of monopolistic firms with irreversible capital.
引用
收藏
页码：2337 / 2351
页数：15
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