This paper empirically investigates the relationship between CPI inflation uncertainty, and private investment in the Iranian economy from 1988 to 2010 by using quarterly data. We employ a bivariate VAR(5)-GARCH(1,1)-in-mean with diagonal BEKK model to discover in a unified framework how are the interactions between the variables. In the model, conditional variance of inflation and private inve...

this paper empirically investigates the relationship between cpi inflation uncertainty, and private investment in the iranian economy from 1988 to 2010 by using quarterly data. we employ a bivariate var(5)-garch(1,1)-in-mean with diagonal bekk model to discover in a unified framework how are the interactions between the variables. in the model, conditional variance of inflation and private inve...

making capital and investment is the main driving forces of economic development. based on the investment sensitivity to the changes of some of macro-economic variables and risk and uncertainty, the present study evaluated the effective factors on investment in private sector in iran during 1980-2007. at first, the uncertainty variables of real informal exchange rate, nominal interest rate and ...

Making capital and investment is the main driving forces of economic development. Based on the investment sensitivity to the changes of some of macro-economic variables and risk and uncertainty, the present study evaluated the effective factors on investment in private sector in Iran during 1980-2007. At first, the uncertainty variables of real informal exchange rate, nominal interest rate and ...

This paper presents empirical evidence that links private investment to rate of return differential, risk aversion, and several types of political and economic risk. Estimating private investment equation for a panel of 25 developing countries over 21 years yields the following results: (i) socio-political instability characterized by nonviolent protests promotes private investment while violen...

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Abstract Using a sample of comparably sized public listed and private firms from nine European countries, we show that reduce their investments by about 50% more than in response to an increase policy-related uncertainty. We find suggestive evidence this can be explained firms’ management being typically subject greater shareholder scrutiny management. Furthermore, only invest efficiently when ...