Belirsizlik Altında Toplam Firma Davranışı, Güven ve Toplam Gelir

Abstract

Firms hold buffer stocks such as capital stocks, inventories, liquid assets, and retained earnings to absorb the effects of uncertainties they face. However, the existence of such buffers affects both the performance of the firms and the aggregate income. In this study, we built a stock-flow consistent system dynamics model to analyze these effects. Dynamic equilibrium solutions present that the presence of uncertainty decreases both aggregate firm profitability and aggregate income. On the other hand, we analyzed the effects of a change in the sentiment of entrepreneurs and firm managers on aggregate variables if the levels of buffer stocks were affected by this sentiment in the presence of uncertainty. Simulation results show that a change in the sentiment index causes the aggregate income to change in the same direction.