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

assets in the economy is greater than zero, an increase in inflation uncertainty will lower the risk premia on all real … and commodity futures contracts yields mixed results. The risk premia on long-term bonds and futures have the "wrong …

in their business cycles relative to those of advanced economies. Information on the domestic price of risk, cost of …

idiosyncratic entrepreneurial risk-- a risk that introduces, not only a precautionary motive for saving, but also a wedge between …

stance. When decomposing the VIX into two components, a proxy for risk aversion and expected stock market volatility …The VIX, the stock market option-based implied volatility, strongly co-moves with measures of the monetary policy … ("uncertainty"), we find that a lax monetary policy decreases both risk aversion and uncertainty, with the former effect being …

superior. The intuition is simple: if underlying technologies are not convex, then risk-sharing can lower expected utility. The … likelihood of a bankruptcy cascade, "contagion," and systemic risk …

, and near-frictionless refinancing opportunities---led to vastly increased systemic risk in the financial system …

markets that had no connection to housing. We find that changes in the "LIB-OIS" spread, a proxy for counterparty risk, was …

between the maximum daily return over the past one month (MAX) and expected stock returns. Average raw and risk …