infrastructure worthless prior to the end of their economic life time. Therefore, some energy-sector assets are at risk of becoming … stranded. This paper investigates whether and how investors price in this risk of asset stranding. We exploit the gradual … valuation of energy utilities. We find that investors take stranded asset risk into consideration, but that they also expect a …

This paper introduces a formal definition and an experimental measurement of the concept of cognitive uncertainty …: people's subjective uncertainty about what the optimal action is. This concept allows us to bring together and partially … explain a set of behavioral anomalies identified across four distinct domains of decision-making: choice under risk, choice …

A large literature suggests that the expected equity risk premium is countercyclical. Using a variety of different … measures for this risk premium, we document that it also exhibits growth asymmetry, i.e. the risk premium rises sharply in … which agents cannot perfectly observe the state of current productivity, can generate the observed asymmetry in the risk …

How does economic uncertainty affect the impact of tax policy? We exploit a natural experiment in which two very …, and once during a period of very high uncertainty. Exploiting sharp discontinuities in eligibility and using rich … administrative data, we find that firms exposed to high uncertainty decide to "wait and see" before investing, despite generous …

We analyse the extent to which firm-level uncertainty is affected by aggregate uncertainty. Firm-level uncertainty is … constructed from a large and monthly panel dataset of manufacturing firms. We find that aggregate uncertainty has a positive and … robust impact on firm-level uncertainty. This effect holds across different types of domestic and international measures of …

choice deviate from what citizens want but that an increase in uncertainty about policy outcomes decreases this distortion …