We review and extend the economic analysis of risk and uncertainty as it relates to behavior mitigating health shocks … for risk-sharing in health by pooling the health care spending risk. In a sense, medical innovation involves a current …

probabilistic terms: we are facing deep uncertainty or ambiguity rather than risk in the classical sense, rendering the classical …Uncertainty is intrinsic to climate change: we know that the climate is changing, but not precisely how fast or in what … available for reducing climate change. Furthermore the uncertainty about these issues is not readily quantified and expressed in …

technologies under uncertainty. Specifically, given two technologies, one with lower costs at present, but the other with greater … uncertainty in the returns to R&D, how should one allocate the R&D budget? We develop a multi-stage stochastic dynamic programming … variance in the uncertainty in returns to R&D and with the skewness of the uncertainty. We also present an illustrative case …

We develop an integrated theory of investment, seasoned equity offerings (SEOs), liquidation, and corporate savings … under uncertainty for a financially constrained firm, which features endogenous growth options, abandonment options, and …

This paper studies Pareto-optimal risk-sharing arrangements in a private information economy with aggregate uncertainty …

the present value of the flow of social benefits minus costs. But the real world is one of considerable uncertainty … discount rates that should be used to compute present values. The implications of uncertainty are complicated by the fact that … horizons. Correctly incorporating uncertainty in policy design is therefore one of the more interesting and important research …

In line with the fallacy of riskification of uncertainty by which decision makers believe that the effects of … organizational inefficiency in dealing with uncertainty shocks—exogenous hazards whose welfare effects spread across industries and … markets, such as natural disasters, terrorist attacks, and financial crises—as a problem of risk management. This is …