Uncertainty about the level of demand is thought to influence irreversible capacity decisions. This paper examines some … implications of the theory literature on this topic in an empirical study of the US cement industry between 1994 and 2006. Firms in … capacity sufficient to supply positive local demand shocks. In the presence of uncertain demand, firms may choose to serve …

Using firm and industry data, we establish two facts: (i) Uncertainty about demand conditions not only reduces export … regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation … of export shares from the most to the least productive incumbents. Greater skewness of the demand distribution and …

/1991, speculative demand shocks also played a role. Third, it is shown that temporary oil price hikes influence economic decisions that … demand shocks can emerge that to date appear to have been overlooked. …

price, the equilibrium risk-free rate, and risk premia. Climate disasters, which are more likely to occur sooner as … temperature rises, significantly increase risk premia. …

derive a general analytic formula for the "risk premium" governing the resulting climate policy. The formula generalizes … making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage … formulation, and future policy response. We show that an optimal response to uncertainty substantially reduces the risk premium. …

We empirically assess the interlinkages between sovereign risk, measured in terms of CDS spreads, and exchange rates … risk of other emerging economies is more relevant for the sovereign risk-exchange rate relationship than the state of … developed markets risk for all countries in our sample and for all segments of the assets distribution. The same considerations …