Investment and Uncertainty: Is There a Potential Role for a Common European Policy?
University of Urbino Carlo Bo - Faculty of Economics; Università Politecnica delle Marche - Money and Finance Research Group (Mo.Fi.R.)
Department of Economics & Law
Quaderni di Economia, Matematica e Statistica No. 59. Universita' di Urbino, Facolta' di Economia
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.
Number of Pages in PDF File: 10
Keywords: Investment, Uncertainty, European economy
JEL Classification: E22, C21, D92
Date posted: November 20, 2000