this uncertainty was unusually high in the late 1990s. We calibrate a stock valuation model that includes this uncertainty …Not necessarily. The fundamental value of a firm increases with uncertainty about average future profitability, and …, and show that the uncertainty needed to match the observed Nasdaq valuations at their peak is high but plausible. The high …

-to-book ratio (M/B) increases with uncertainty about average profitability, especially for firms that pay no dividends. M/B is …

position through the “valuation channel” of external adjustment, namely capital gains and losses on the country’s external … assets and liabilities. We examine this valuation channel theoretically in a dynamic equilibrium portfolio model with … international trade in equity that encompasses complete and incomplete asset market scenarios. By separating asset prices and …

In this Paper we study the changes in corporate valuation induced by the formation of Economic and Monetary Union (EMU …

stabilizing valuation effects contribute as much as 31% of the external adjustment. Our theory also has asset-pricing implications … to two years ahead and net exports at longer horizons. The exchange rate affects the trade balance and the valuation of …

We study the effects of changes in uncertainty about future fiscal policy on aggregate economic activity. Fiscal … consolidation inevitable, there is considerable uncertainty about the policy mix and timing of such budgetary adjustment. To … evaluate the consequences of this increased uncertainty, we first estimate tax and spending processes for the U.S. that allow …