@techreport{NBERw4986,
 title = "The Effect of Uncertainty on Investment: Some Stylized Facts",
 author = "John V. Leahy and Toni M. Whited",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "4986",
 year = "1995",
 month = "January",
 URL = "http://www.nber.org/papers/w4986",
 abstract = {The theoretical relationship between investment and uncertainty is ambiguous.  This paper briefly surveys the insights that theory has to offer and then runs a series of simple tests aimed at evaluating the empirical significance of various theoretical effects.  Our results from a panel of U.S. manufacturing firms indicate a negative effect of uncertainty on investment consistent with theories of irreversible investment.  We find no evidence for a positive effect via the channel of the convexity of the marginal product of capital, and we find no evidence for the presence of a CAPM-based effect of risk.},
}