TY  - BOOK
AU  - Bansal,Ravi
AU  - Croce,Mariano Max
AU  - Liao,Wenxi
AU  - Rosen,Samuel
ED  - National Bureau of Economic Research.
TI  - Uncertainty-Induced Reallocations and Growth
T2  - NBER working paper series
PY  - 2019///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - September 2019; Hardcopy version available to institutional subscribers
N2  - Focusing on both micro and aggregate U.S. data, we show the existence of a significant link between aggregate uncertainty and reallocation of resources away from R&D-intensive capital. This link is important because a decrease in the aggregate share of R&D-oriented capital forecasts lower medium-term growth. In a multi-sector production economy in which (i) growth is endogenously supported by risky R&D investments, and (ii) the representative agent is volatility-risk averse and has access to other safer technologies that do not support growth, uncertainty shocks have a first-order negative impact on medium-term growth and welfare
UR  - https://www.nber.org/papers/w26248
UR  - http://dx.doi.org/10.3386/w26248
ER  -