What Type of Policy Uncertainty Matters for Business?

Masayuki Morikawa

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: This paper uses data from an original survey of Japanese listed companies to present empirical findings concerning subjective uncertainties over economic policies and their effects on business operations. Companies perceive uncertainty over the future course of certain economic policies, such as an international trade policy and the social security system. Uncertainty regarding the tax system, trade policy, and environmental policy can have substantial effects on the managerial decisions, especially on equipment investment and overseas activities. Among non-manufacturing companies, uncertainty regarding the social security system and labor market regulations affects employee hiring and organizational restructuring. To achieve economic growth by promoting future-oriented investment, it is essential to improve the predictability of fundamental economic policies and institutions.

Pages: 22 pages
Date: 2013-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
https://www.rieti.go.jp/jp/publications/dp/13e076.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:13076

Access Statistics for this paper

More papers in Discussion papers from Research Institute of Economy, Trade and Industry (RIETI) Contact information at EDIRC.
Bibliographic data for series maintained by TANIMOTO, Toko ().