Is the investment-uncertainty relationship non-linear? an emperical [i.e. empirical] analysis for the Netherlands

H. Bo, R. Lensink

Onderzoeksoutput: Working paperAcademic

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We examine the investment-uncertainty relationship for a panel of Dutch manufacturing firms. The system generalised method of moments (GMM) estimates suggests that the effect of uncertainty on investment is non-linear: for low levels of uncertainty an increase in uncertainty has a positive effect on investment, whereas 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 demonstrated empirically.
Originele taal-2English
Aantal pagina's24
StatusPublished - 2000

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