Firms' investment decisions in response to demand and price uncertainty

Journal article | Zeitschriftenartikel

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 behavior of monopolistic firms with irreversible capital.

Angaben zum Objekt

• Umfang: Seite(n): 2337-2351
• Sprache: Englisch
• Anmerkungen: Status: Postprint; begutachtet (peer reviewed)

Verweise und Beziehungen

• Erschienen in: Applied Economics, 40(18)

Klassifikation und Themen

• Thema: Wirtschaft ; Management ; Volkswirtschaftslehre

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Vermeulen, Philip ; Fuss, Catherine Isabelle
• Ereignis: Veröffentlichung
• (wo): Vereinigte Staaten von Amerika
• (wann): 2008

Weitere Informationen

• DOI: https://doi.org/10.1080/00036840600959909
• URN: urn:nbn:de:0168-ssoar-240571
• Rechteinformation: GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
• Letzte Aktualisierung: 21.06.2024, 16:27 MESZ