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Financial uncertainty and business investment

Stockhammer, Engelbert and Grafl, Lucas (2008) Financial uncertainty and business investment. Department of Economics Working Paper Series, 123. Inst. für Volkswirtschaftstheorie und -politik, WU Vienna University of Economics and Business, Vienna.

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Abstract

The paper seeks to contribute to the empirical analysis of financial uncertainty and investment from a Post Keynesian perspective. The paper uses the volatility of the exchange rate, the volatility of the stock market index, and the real gold price as indicators for financial uncertainty. An increase in the volatility of a variable is a sufficient, but not a necessary condition for an increase in uncertainty (regarding this variable). The effects of changes in uncertainty on investment are investigated econometrically for the USA, the UK, the Netherlands, Germany, and France. Financial uncertainty has significant negative effects in the USA and the Netherlands. (author´s abstract)

Item Type: Paper
Keywords: business investment / uncertainty / financial instability / Keynesian economics / financial systems
Classification Codes: RVK QP 720, QK 600 ; JEL E12, E20, E22, E25, E61
Divisions: Departments > Volkswirtschaft
Depositing User: Repository Administrator
Date Deposited: 21 Aug 2008 11:30
Last Modified: 15 Sep 2015 12:24
URI: http://epub.wu.ac.at/id/eprint/564

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