groups in the dispersion of household-specific rates of inflation. Using survey data on inflation expectations, I show that … of the expectations formation process of households. …

We study a dynamic stochastic general equilibrium model in which agents are concerned about model uncertainty regarding … from climate change to damages is subject to uncertainty, and we use robust control theory techniques to study efficiency … dynamic optimal taxation. A small increase in the concern about model uncertainty can cause a significant drop in optimal …

managers are risk averse, they might underinvest when firm-specific uncertainty increases, leading to suboptimal investment …

A consumption-based asset pricing model with risk and uncertainty implies that the time-varying exposures of equity … portfolios to the market and uncertainty factors carry positive risk premiums. The empirical results from the size, book … (individual stocks) with market and uncertainty predict the time series and cross-sectional variation in stock returns. We find …

A central tenet of inflation targeting is that establishing and maintaining well-anchored inflation expectations are … public forms expectations and policymakers must formulate and implement monetary policy. Using an estimated model of the U ….S. economy, we show that monetary policy rules that would perform well under the assumption of rational expectations can perform …