) cases, these robust policies are more aggressive than the optimal policies absent model uncertainty. The specific robust … policies depend strongly on the formation of model uncertainty used, and we make some suggestions about which formulation is …

, and predictability of stock returns. The key to our results is that the agent's risk-aversion changes over time as a …

We quantify and study state-level economic policy uncertainty. Tapping digital archives for nearly 3,500 local … newspapers, we construct three monthly indexes for each state: one that captures state and local sources of policy uncertainty … uncertainty much more than the average election. The COVID-19 pandemic drove huge increases in policy uncertainty and unemployment …

, ambiguity leads to cautious behavior and uncertainty premia in asset markets. Unlike risk, ambiguity can generate first order …We survey literature on ambiguity with an emphasis on recent applications in macroeconomics and finance. Like risk …

depends on the concentration of these aggregate shocks; it follows that one cannot estimate the degree of risk aversion from …

Auerbach-Jorgenson first year recovery plan is not equivalent to indexing as is often claimed, if uncertainty about inflation … implies uncertainty about the real after-tax discount rate …

This paper examines the determination of risk premiums in foreign exchange markets. The statistical model is based on a … heteroskedasticity. We find that there is evidence for heteroskedasticity and that the conditional expectation of the risk premium is a …