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Does Uncertainty Affect Investment Expenditure? A Comment

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  • Cantillo, Andres

Abstract

This is a theoretic and econometric assessment of Peter Ferderer’s seminal paper published in the Journal of Post Keynesian Economics with the same title in 1993. New data shows that high forecaster discords coincide with a decrease in Investment expenditure. Specifically, the forecaster discord about the aggregate level of employment explains an important part of the fluctuations in investment. Even if the forecaster discords are included in models based on Tobin’s q, they play an important role.

Suggested Citation

  • Cantillo, Andres, 2011. "Does Uncertainty Affect Investment Expenditure? A Comment," MPRA Paper 56866, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:56866
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    References listed on IDEAS

    as
    1. J. Peter Ferderer, 1993. "Does Uncertainty Affect Investment Spending?," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 16(1), pages 19-35, September.
    2. Barro, Robert J, 1990. "The Stock Market and Investment," The Review of Financial Studies, Society for Financial Studies, vol. 3(1), pages 115-131.
    3. Tobin, James, 1969. "A General Equilibrium Approach to Monetary Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 1(1), pages 15-29, February.
    4. Peter K. Clark, 1979. "Investment in the 1970s: Theory, Performance, and Prediction," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 10(1), pages 73-124.
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    More about this item

    Keywords

    Macroeconomics; Uncertainty; Expectations.;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • E0 - Macroeconomics and Monetary Economics - - General
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • G0 - Financial Economics - - General
    • G1 - Financial Economics - - General Financial Markets

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