Is the investment-uncertainty relationship non-linear ? An empirical analysis for the Netherlands

@inproceedings{Bo2001IsTI,
  title={Is the investment-uncertainty relationship non-linear ? An empirical analysis for the Netherlands},
  author={Hong Bo},
  year={2001}
}
We examine the investment-uncertainty relationship for a panel of Dutch nonfinancial firms. The system generalised method of moments (GMM) estimates suggest that the effect of uncertainty on investment is nonlinear: for low levels of uncertainty an increase in uncertainty has a positive effect on investment, while for high levels of uncertainty an increase in uncertainty lowers investment. This result is in line with a number of theoretical studies, but has never been documented empirically. 
Highly Cited
This paper has 24 citations. REVIEW CITATIONS

From This Paper

Topics from this paper.

Citations

Publications citing this paper.
Showing 1-10 of 17 extracted citations

Notice of RetractionEmpirical study on influencing factors of enterprise entry into science and technology park

2010 IEEE International Conference on Advanced Management Science(ICAMS 2010) • 2010

References

Publications referenced by this paper.
Showing 1-10 of 13 references

Investment, Capital Market Imperfections and Uncertainty: Theory and Empirical Results

R. Lensink, H. Bo, E. Sterken
Journal of Money, Credit, and Banking, • 2001

Discovering the link between uncertainty and investment-microeconometric evidence from Germany

H. Böhm, M. Funke, N. A. Siegfried
Working paper no.599, • 1999

Risk-aversion and the uncertainty-investment relationship: A note

T. Nakamura
1999
View 1 Excerpt

The Impact of Cash Flow Volatility on Discretionary Investment and the Costs of Debt and Equity Financing

B. A. Minton, C. Schrand
Journal of Financial Economics, • 1999
View 2 Excerpts

Cyclical patterns in the variance of economic activity

M. W. French, D. E. Sichel
Journal of Business & Economic Statistics, • 1993
View 1 Excerpt

The stock market, profit, and investment

O. Blanchard, C. Rhee, L. Summers
Macroeconomics, • 1993
View 1 Excerpt

A theory of disappointment aversion

F. Gul
Journal of Economic Theory, • 1991
View 1 Excerpt

Similar Papers

Loading similar papers…