Allocation effects of uncertainty on resources in Japan

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2 Citations (Scopus)

Abstract

This paper provides evidence of a negative association between macroeconomic uncertainty and the cross sectional dispersion of investment rate for a panel of Japanese manufacturing firms. We show that an increase in uncertainty leads to the narrowing of the cross section dispersion of investment rate and vice versa. This finding suggests that firms' fixed capital investment behavior becomes more homogenous in times of increased uncertainty.
Original languageEnglish
Pages (from-to)23-26
Number of pages4
JournalEconomics Letters
Volume122
Issue number1
DOIs
Publication statusPublished - Jan 2014

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