Business uncertainty and investment: Evidence from Japanese companies

Masayuki Morikawa

Journal of Macroeconomics, 2016, vol. 49, issue C, 224-236

Abstract: This study, using data from a representative quarterly business survey in Japan, constructs measures of business uncertainty, presents empirical findings about the time-series properties of business uncertainty measures, and analyzes the relationship between these measures and investments. The results show, first, that business uncertainty heightened at the time of the collapse of Lehman Brothers, but the effect of an increase in the consumption tax rate on business uncertainty was small. Second, manufacturing and small companies tend to face higher business uncertainty than non-manufacturing and large companies. Third, we detect a negative association between business uncertainty and investments.

Keywords: Uncertainty; Business condition; Prediction error; Investment (search for similar items in EconPapers)
JEL-codes: E22 E32 E37 E66 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (29)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0164070416300398
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Business Uncertainty and Investment: Evidence from Japanese companies (2016)
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:eee:jmacro:v:49:y:2016:i:c:p:224-236

DOI: 10.1016/j.jmacro.2016.08.001

Access Statistics for this article

Journal of Macroeconomics is currently edited by Douglas McMillin and Theodore Palivos

More articles in Journal of Macroeconomics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().