Small Business Economics

, Volume 26, Issue 4, pp 365–376 | Cite as

The Impact of Perceived Expectations and Uncertainty on Firm Investment

  • Mark J. Koetse
  • Arno J. van der Vlist
  • Henri L. F. de Groot
Article

Abstract

This paper analyses the (differential) impact of perceived expectations and uncertainty on investment spending in small and large firms. We analyse two types of investment, viz. aggregate investment and investment in energy-saving technologies, using Dutch firm level data. The results show that expectations and uncertainty about input- and output prices and domestic demand have substantial but different effects on investment spending in firms of different sizes. Furthermore, we find evidence, at least for small firms, that there are important differences between the effects of uncertainty about input and output variables.

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Copyright information

© Springer 2006

Authors and Affiliations

  • Mark J. Koetse
    • 1
  • Arno J. van der Vlist
    • 2
  • Henri L. F. de Groot
    • 1
  1. 1.Department of Spatial EconomicsFree University and Tinbergen InstituteAmsterdamThe Netherlands
  2. 2.Department of Business EconomicsWageningen UniversityWageningenThe Netherlands

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