We develop a model of pandemic risk management and firm valuation. We introduce aggregate transmission shocks into an …

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 …

risk sharing. Higher uncertainty increases stock prices, risk premiums, volatility, wealth inequality and the dispersion of …I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth …

Consider legal uncertainty as uncertainty about the legality of a specific action. In particular, suppose that the … threshold of legality is uncertain. I show that this legal uncertainty raises welfare. Legal uncertainty changes deterrence in … decreases for firms above the threshold. Hence, legal uncertainty acts as a welfare enhancing screen and increases welfare …

We develop an integrated theory of investment, seasoned equity offerings (SEOs), liquidation, and corporate savings … under uncertainty for a financially constrained firm, which features endogenous growth options, abandonment options, and …

derives max-min, max-max and min-max regret policies to deal with this particular form of climate (model) uncertainty and with …

by the presence of uncertainty about the committee members' output objective. We show how this need for conservatism …