“…With various identification schemes, the empirical studies have examined the aggregate effects of uncertainty but the results are still ambiguous. For example, a block of studies by Alexopoulos and Cohen (2009), Bloom (2009), and Bloom, Floetotto, Jaimovich, and Terry (2012) shows a sizable effect of uncertainty in productivity on aggregate variables like GDP and employment, whereas Bachmann, Elstner, and Sims (2013), Bachmann and Bayer (2013), and Bekaert, Hoerova, and Duca (2013) report evidence on small impacts. In addition to inconclusive evidence, previous studies have mainly analyzed the adverse impacts of uncertainty on economic activities while abstracting opposite directions.…”