IDEAS home Printed from https://ideas.repec.org/a/icf/icfjmo/v08y2010i3p14-22.html
   My bibliography  Save this article

The Effect of Uncertainty in Inflation Expectations on Private Investment

Author

Listed:
  • Yaron Zelekha

Abstract

Though much research has been done worldwide, the effect of uncertainty concealed in inflation expectations on private investment is disputed theoretically in the absence of enough empirical evidence to reach a conclusion. Furthermore, at the same time, traditional investment equations do not reflect the structural correlation between investment and product, because they ignore the rational expectations theory. This paper presents a theoretical foundation and an empirical estimation of private investment in Israel, using Israel’s unique data regarding inflation expectations. The results support the hypothesis that uncertainty negatively affects private investment in Israel. Furthermore, it appears that uncertainty is the most important factor, next to product, affecting private investment.

Suggested Citation

  • Yaron Zelekha, 2010. "The Effect of Uncertainty in Inflation Expectations on Private Investment," The IUP Journal of Monetary Economics, IUP Publications, vol. 0(4), pages 14-22, November.
    • Handle: RePEc:icf:icfjmo:v:08:y:2010:i:3:p:14-22
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Simplice A. Asongu & Joseph Nnanna & Vanessa S. Tchamyou, 2020. "Finance, Institutions and Private Investment in Africa," Working Papers of the African Governance and Development Institute. 20/080, African Governance and Development Institute..

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:icf:icfjmo:v:08:y:2010:i:3:p:14-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: G R K Murty (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.