“Wait-and-see” effect not always caused by economic uncertainty, Notre Dame research shows | News | Notre Dame News | University of Notre Dame Liquid error: internal Skip To Content Skip To Navigation Skip To Search University of Notre Dame Notre Dame News Experts ND in the News Subscribe About Us Home Contact Search Menu Home › News › “Wait-and-see” effect not always caused by economic uncertainty, Notre Dame research shows “Wait-and-see” effect not always caused by economic uncertainty, Notre Dame research shows Published: July 30, 2010 Author: Liquid error: internal Business uncertainty leads to quick drops in economic activity, according to a long-held belief in economics. New research from the University of Notre Dame casts doubt on that assumption. Published recently by the National Bureau of Economic Research, research by Notre Dame economist Eric Sims and colleagues from the University of Michigan and the University of Munich found no evidence that increases in uncertainty cause a wait-and-see effect, or slowing of economic activity. “We wanted to tackle the question of whether surprise increases in business uncertainty lead to large and quick drops in economic activity,” Sims says. “Our main finding is that increases in business uncertainty are associated with prolonged declines in economic activity, but that it takes a long time to play out. Uncertainty seems to be more of a consequence of recessions, not a cause of recessions,” Sims says. One of the implications of this research is the message to policy makers that talking about the need to end uncertainty makes no difference; instead, only an increased demand will have an economic impact. A member of the Notre Dame faculty since 2009, Sims specializes in macroeconomics. Contact: Eric Sims, 574-631-6309, esims1@nd.edu Posted In: Research Home Experts ND in the News Subscribe About Us Related October 05, 2022 Astrophysicists find evidence for the presence of the first stars October 04, 2022 NIH awards $4 million grant to psychologists researching suicide prevention September 29, 2022 Notre Dame, Ukrainian Catholic University launch three new research grants September 27, 2022 Notre Dame, Trinity College Dublin engineers join to advance novel treatment for cystic fibrosis September 22, 2022 Climate-prepared countries are losing ground, latest ND-GAIN index shows For the Media Contact Office of Public Affairs and Communications Notre Dame News 500 Grace Hall Notre Dame, IN 46556 USA Facebook Twitter Instagram YouTube Pinterest © 2022 University of Notre Dame Search Mobile App News Events Visit Accessibility Facebook Twitter Instagram YouTube LinkedIn