-probability extreme events on environmental policy in a continuous-time real options model with “tail risk”. In a nutshell, our results … indicate the importance of tail risk and call for foresighted pre-emptive climate policies …

distance-related migration costs cannot explain the lower distance sensitivity of educated and risk-loving individuals …Why are better educated and more risk-friendly persons more mobile across regions? To answer this question, we use … patterns. Our findings indicate that risk-loving and skilled people are more mobile over longer distances because they are more …

This study explores people's risk attitudes after having suffered large real-world losses following a natural disaster … is consistent with prospect theory predictions of the adoption of a risk-seeking attitude after a loss …

decision problems under uncertainty, is used to build a large stochastic numerical equilibrium model of the Western European … energy markets. We use the stochastic model to analyze the impact of economic and political uncertainty on the Western … European energy markets. We demonstrate that the equilibria under uncertainty differ significantly from the deterministic …

We propose a new instrument to identify uncertainty shocks in a SVAR model with external instruments. The instrument is … constructed by exploiting variations in the price of gold around events that capture periods of changes in uncertainty. The … variations in the price of gold around the events correlate with the underlying uncertainty shocks, due to the perception of gold …

How does risk affect saving? Empirical work typically examines the effects of detectible differences in risk within the … data. How these differences affect saving in theoretical models depends on the metric one uses for risk. For labor …-income risk, second-degree increases in risk require prudence to induce increased saving demand. However, prudence is not …

scientific uncertainty about the effects of increased greenhouse gas concentrations on climate. Criticisms of this controversial …

We study the importance of uncertainty and public finance to the welfare ranking of three environmental policy … revenues finance public abatement. When the main source of uncertainty is economic, the most efficient recipe is to levy … pollution taxes and use the collected tax revenues to finance public abatement. However, when environmental uncertainty is the …

The paper reexamines the welfare economics of intergenerational risk. Risk and its resolution over time are modeled as … uncertain benefits of future generations; as time passes, the planner observes the realized shocks and becomes more informed … preferences to (i) disentangle aversion to intergenerational inequality from aversion to risk, (ii) exhibit a preference for early …

discount rate, which is the crucial determinant in balancing immediate costs against future benefits and the single most … and with respect to non-risk uncertainty. The paper derives the resulting changes of the risk-free and the stochastic …Uncertainty has an almost negligible impact on project value in the economic standard model. I show that a …