accounts for the interaction between temperature, economic growth and risk. The model simultaneously matches the projected … temperature path, the observed consumption growth dynamics, discount rates provided by the risk-free rate and equity market … resolution of uncertainty and long-run impact of temperature on growth imply a significant SCC and motivate early actions to …

risk sharing. Higher uncertainty increases stock prices, risk premiums, volatility, wealth inequality and the dispersion of …I characterize a dynamic economy under general distributions of households' risk tolerance, endowments, and beliefs … consumption-share increases; (b) the wealth-share of high risk-tolerant households increases; (c) richer households' wealth …

This paper documents several facts on the real effects of economic uncertainty. First, higher uncertainty is associated … with a more dispersed distribution of output growth. Second, the relation is highly asymmetric: A rise in uncertainty is … impact on its upper tail. Third, the negative response of growth to uncertainty shocks is larger when the equity market is …

We study the effects of changes in uncertainty about future fiscal policy on aggregate economic activity. Fiscal … consolidation inevitable, there is considerable uncertainty about the policy mix and timing of such budgetary adjustment. To … evaluate the consequences of this increased uncertainty, we first estimate tax and spending processes for the U.S. that allow …

This paper explores links between policy uncertainty and growth. It provides evidence on the correlation between policy … uncertainty and per capita real GDP for 46 developing countries over the 1970-85 period. Cross-section regressions on growth … suggest that after accounting for standard variables from the endogenous growth literature, policy uncertainty and growth are …