Investment and Uncertainty: Is There a Potential Role for a Common European Policy?
Quaderni di Economia, Matematica e Statistica No. 59. Universita' di Urbino, Facolta' di Economia
10 Pages Posted: 20 Nov 2000
Date Written: July 2000
The aim of this paper is twofold. First, it contributes to the long-running debate on the role of how uncertainty affects firms' investment decisions. Our results show that uncertainty is negatively correlated with investment. Secondly, it shows the desirability of a common European economic policy oriented both to the support and the stabilization of aggregate demand.
Keywords: Investment, Uncertainty, European economy
JEL Classification: E22, C21, D92
Suggested Citation: Suggested Citation