price dynamics. In particular, rational habits models suggest 1. that price volatility and uncertainty will reduce demand …

price dynamics. In particular, rational habits models suggest 1. that price volatility and uncertainty will reduce demand …?price elasticity. These habits also imply that the e¤ect of price uncertainty must be taken into account when projecting the impacts of …

needs to undertake in order to internalize climate damages. I then consider whether the risk of catastrophic damage really …

value or policy functionapproximations, and reductions of the uncertainty domain. The paper promotes astate reduced …

resulting representation uses only basic tools from risk analysis, but employs them recursively. The paper extends the concept … framework permits a threefold disentanglement of intertemporal substitutability, Arrow-Pratt risk aversion, and smooth ambiguity … his confidence in the uncertainty assessment of a particular setting. …

We analyze the impact of damage uncertainty on optimal mitigation policies in the integrated assessment of climate … deriving optimal policy rules under persistent uncertainty. For this purpose,we construct a close relative of the DICE model in … a recursive dynamic programming framework. Our recursive approach allows us to disentangle effects of risk, risk …

The paper introduces a new notion of risk aversion that is independent of the good under observation and its measure … consumption paths and the von Neumann & Morgenstern (1944) assumptions. In the one-commodity special case, the new notion of risk … aversion closely relates to a disentanglement of standard risk aversion and intertemporal substitutability. …

The paper analyzes the discount rate under uncertainty. The analysis complements the probabilistic characterization of … uncertainty by a measure of confidence. Special cases of the model comprise discounting under smooth ambiguity aversion as well as … discounting under a disentanglement of risk aversion from aversion to intertemporal substitution. The paper characterizes the …

respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic social discount …Uncertainty has an almost negligible impact on project value in the economicstandard model. I show that a comprehensive … evaluation of uncertainty and uncertainty attitude changes this picture fundamentally. The analysis relies on the discount rate …