Firm optimism and pessimism

The Sources of Capital Misallocation

“…Our analysis shows that accounting for other firm-specific factors acting on firms' investment decisions is potentially crucial in order to accurately estimate the severity of these frictions and reconcile a broader set of micro-level moments. A similar point applies to recent work on quantifying firm-level uncertainty, for example, Bloom (2009), Bachmann and Elstner (2015) and Jurado et al (2015).…”

What Drives Aggregate Investment? Evidence from German Survey Data

“…Nevertheless, a growing number of economists has now made use of subjective survey data, mainly to study expectation formation and their rationality: Nerlove (1983), using business surveys from various countries, is a very early example, Bachmann and Elstner (2015) and Gennaioli et al (2015) are more recent ones. Guiso and Parigi (1999), Bachmann et al (2013) and Bachmann et al (2017) have used expectation data from business surveys to study the impact of business uncertainty on economic activity.…”

Harmonization of the ifo Business Survey’s Micro Data

“…This is mainly due to the fact that the industry-specific surveys are heterogeneous in the level of observational units (product vs. firm) as well as in the industry classification systems used in the micro data. Hence, researchers usually restricted their analyses to the subset of manufacturing firms (e. g. Pesaran/Timmermann 2009;Bachmann et al 2013;Carstensen et al 2013;Strasser 2013;Fidrmuc/Hainz 2013;Bachmann/Elstner 2015;Bachmann et al 2018;Massenot/Pettinicchi 2018;Huber 2018;Bachmann et al 2019;and Enders et al 2019a,b).…”