setting, an increase in uncertainty about future shocks causes significant contractions in the economy and may lead to non … outcomes. Fluctuations in uncertainty and the zero lower bound help our model match the unconditional and stochastic volatility …

the mean and volatility of equity returns. Our model assumes a small risk of a rare disaster that is calibrated based on … the international data on large consumption declines. We allow the risk of this rare disaster to be stochastic, which …

In this research, we provide new empirical evidence on the importance of time-varying uncertainty for the exchange rate … and the excess return in currency markets. Following an increase in monetary policy uncertainty, the dollar exchange rate … general-equilibrium theory of exchange rate determination based on the interaction between monetary policy and time …

Insurance induces a well-known tradeoff between the welfare gains from risk protection and the welfare losses from … the tradeoff simultaneously, allowing for a relationship between moral hazard and risk protection. An important feature of …, and stoplosses that alter moral hazard as well as risk protection relative to no insurance. I illustrate the properties of …

larger than aggregate random disturbances, accounting for about 80% of the overall uncertainty faced by plants. The extent of … six times as much idiosyncratic uncertainty as plants in the least volatile. We provide evidence suggesting that … idiosyncratic risk is higher in industries where the extent of creative destruction is likely to be greater …

information concerning product risk, and mandatory and voluntary disclosure rules are equivalent …

and to examine two potential explanations of the asymmetry: leverage effects and time-varying risk premiums. Our empirical …

continue to hold even if the coefficient of relative risk aversion approaches zero (that is, even if the marginal utility of … income is constant so that agents are risk neutral in the conventional sense) …

dominate, in that public releases increase uncertainty about fundamentals. In some cases, public releases can create or …

This paper proposes a simple index of the welfare significance of uncertainty in the public goods resulting as policy … function of the coefficient of relative risk aversion, the variance in the measure of environmental service associated with …