analysis. I will be particularly concerned with the role of uncertainty. When market conditions evolve unpredictably (as they …

aggregate growth. In equilibrium, slow-moving misallocation endogenously generates long-run uncertainty about economic growth by …

The real options framework has been used extensively to analyze the timing of investment under uncertainty. While …-inconsistent preferences. Two opposing forces determine investment timing: while evolving uncertainty induces entrepreneurs to defer investment …

We show how real and financial frictions amplify the impact of uncertainty shocks. We build a model with real frictions …, and find adding financial frictions roughly doubles the impact of uncertainty shocks. Higher uncertainty alongside … for uncertainty exploiting differential firm exposure to exchange rate and price volatility. These results highlight why …

duration of the disasters. Uncertainty about the persistence of states can lead to seemingly pessimistic behavior in bad times … and optimistic behavior in good times. In a disaster, uncertainty about duration acts as an amplification mechanism … welfare cost of parameter uncertainty can be extreme. However, in advance of a disaster, uncertainty about the arrival rate …

An important class of investment decisions is characterized by unrecoverable sunk costs, resolution of uncertainty …

demand uncertainty. The observation that exit rates decline with firm age motivates the assumption of last-in first …