We develop a measure of static misallocation that separates uncertainty from misallocation generated by tax …-like distortions. In the Finnish firm-level data, uncertainty accounts for the majority of ex post misallocation and explains a strong … implies idiosyncratic distortions, in line with our accounting approach. According to our quantitative results, uncertainty …

robust model for small amounts of uncertainty and analyze the effect of robustness on optimal trading strategies and …

The current paper broadens the understanding for the role of uncertainty in the context of a macroeconomic environment …. It focuses on the implications of uncertainty shocks on indicators that tend to precede financial crises. In an empirical … analysis we show for a set of four euro area countries that negative uncertainty shocks, while accompanied by favorable effects …

that a shift to a high-uncertainty regime incentivizes firms to invest in their ability to adjust prices. We formalize this … uncertainty, firms set prices more flexibly. This improves their resilience, reducing exit and output losses in response to … negative supply shocks. Uncertainty regarding monetary policy has similar effects. We show that higher monetary policy …