is comparable to numeric models used in policy advising. Uncertainty surrounding climate change remains large. The closed …-form expressions of welfare loss from shocks and epistemological uncertainty identify the interaction of (intertemporal) risk attitude …, distributional moments, and the climatic shadow values. Welfare gains from reducing uncertainty about temperature feedbacks are much …

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

define the individual degree of pessimism as an index measuring probability differences across states. We show that the … tolerance. From this central result, we show how increasing disagreement on the state probability affects the state probability … of the representative agent. We show that the divergence of opinions about the probability of occurrence of a boom may …

, decision makers can be biased, display aversion to prior uncertainty, and thus tend to select choices that are familiar (i … of risk-averse investors who select risky projects in an environment characterized by epistemic uncertainty (risk …

Environmental managers face substantial uncertainty when deciding on management actions. To reduce this uncertainty … on the management cost, the assumed value of a good state and on the level of uncertainty regarding the ecological state …. In addition, we observe a negative relation between the relative management cost and the prior probability that maximises …

We compare preferences for temporal resolution when uncertainty is resolved over a probability rather than a value. In … whether values or probabilities define the main object of uncertainty. In our experiment, however, most subjects resolved …

discuss discontinuities and sheepskin effects within this approach. -- human capital theory ; uncertainty ; irreversibility … human capital investment decision. Real option theory offers a new perspective of the human capital investment decision … under uncertainty and irreversibility. Unlike other approaches we include accumulative schooling costs, and provide a full …

The paper studies the interaction between cyclical uncertainty and investment in a stochastic real option framework … of the link between cyclical uncertainty and investment is quantified using simulations of the model. The chief … ; Markov switching ; Tobin's q, uncertainty …