An important role for bank capital is that of a buffer against unexpected losses. As uncertainty about these losses … counterfactual experiment suggests that a decline in uncertainty to the lowest level measured in the sample generates an average … response to increased uncertainty …

This paper quantifies the economic impact of uncertainty shocks in the UK using data that span the recent Great … Recession. We find that uncertainty shocks have a significant impact on economic activity in the UK, depressing industrial … negligible after 18 months. Interestingly, the impact of uncertainty shocks on industrial production in the UK is strikingly …

Recent studies show that uncertainty shocks have quantitatively important effects on the real economy. This paper …-neutral shareholders and subject to limited liability, can exhibit self-insurance, and thus loan supply contracts when uncertainty …. Consistent with the theoretical predictions, increases in uncertainty reduce the supply of credit, more so for banks with lower …

policy on output, as well as uncertainty in the model parameters and system dynamics. Uncertainty is specified in general …