Does Demand and Price Uncertainty affect Belgian and Spanish Corporate Investment?

Marga Peeters

No 2001031, Discussion Papers (REL - Recherches Economiques de Louvain) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: This paper investigates erapirically the influence of uncertainty on corporate investment. Uncertainty of demand, output prices and investment prices are measured by the standard deviation of (pre-)filtered Belgian (1984-1992) and Spanish (1983-1993) panel data, and included as explanatory variables in the investment equations derived from a neo-classical model with financial constraints. GMM-results indicate that investment behaviour towards output price uncertainty differs significantly in conjecture with a firm's size and leverage.

Keywords: Investment; uncertainty; financial factors (search for similar items in EconPapers)
JEL-codes: C23 C52 D21 D92 (search for similar items in EconPapers)
Pages: 22
Date: 2001-09-01
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Citations: View citations in EconPapers (11)

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Related works:
Working Paper: Does demand and price uncertainty affect Belgian and Spanish corporate investment? (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvre:2001031

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