Firm-level uncertainty and investments: evidence from South Tyrol

The series of crises and disruptions in recent years has made it increasingly difficult for firms to make confident forecasts for the future. Against this background, the Institute for economic research (IER) of the Chamber of commerce of Bolzano/Bozen and the Banca d'Italia analysed the data from the business survey ‘economic barometer’ to quantify the uncertainty of South Tyrolean firms and measure the impact of this uncertainty on their investment activity. 

The analysis, carried out by Andrea Locatelli (Bank of Italy, Trento branch), Luciano Partacini (IER) and Nicola Riz (IER), is published in the Bank of Italy's ‘Questioni di Economia e Finanza’ series and in the Journal of Business Cycle Research.