IDEAS home Printed from https://ideas.repec.org/p/tin/wpaper/20030025.html
   My bibliography  Save this paper

Investment, Expectations and Uncertainty: Empirical Evidence on the Relevance of Firm Size

Author

Listed:
  • Mark J. Koetse

    () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Arno J. van der Vlist

    () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

  • Henri L.F. de Groot

    () (Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam)

Abstract

This paper analyses the effect of uncertainty on investment spending. We analyse twotypes of investment, i.e. aggregate investment and investment in energy saving technologies,using subjective evaluations of expectations and uncertainty of Dutch firms in 1997. Weestimate several models distinguishing between small and large firms. The results suggest thatinvestments in energy saving technologies in small firms are largely cost driven, whereas inlarge firms they are an integral part of general investment spending. Furthermore, expectationsand uncertainty have important although different effects on investment spending in small andlarge firms. We find evidence, at least for small firms, that there are important differencesbetween the effects of uncertainty around input and output variables.

Suggested Citation

  • Mark J. Koetse & Arno J. van der Vlist & Henri L.F. de Groot, 2003. "Investment, Expectations and Uncertainty: Empirical Evidence on the Relevance of Firm Size," Tinbergen Institute Discussion Papers 03-025/3, Tinbergen Institute.
  • Handle: RePEc:tin:wpaper:20030025
    as

    Download full text from publisher

    File URL: https://papers.tinbergen.nl/03025.pdf
    Download Restriction: no

    More about this item

    Keywords

    Investment; Expectations; Uncertainty; Firm size.;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:tin:wpaper:20030025. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tinbergen Office +31 (0)10-4088900). General contact details of provider: http://edirc.repec.org/data/tinbenl.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.