, Prices of Risk, and Model Detection</li> <li>Robust Control and Model Uncertainty</li> <li>Robust Control and Model … the Price of Uncertainty</li> <li>Beliefs, Doubts and Learning: Valuing Macroeconomic Risk</li> <li>Three Types of …), <em>Uncertainty within Economic Models</em> includes articles adapting and applying robust control theory to problems in …

aversion. Detection error probabilities can be used to discipline empirically plausible amounts of robustness. We describe … applications to asset pricing uncertainty premia and design of robust macroeconomic policies. …

robustness through risk analysis, which uses Latin hypercube sampling (LHS) to estimate the probabilities of specific system …, that WIP is minimized, while the probability of the service rate being higher than 95% still exceeds 0.90. By robustness … uses bootstrapping. Short-term robustness is illustrated for a four-stage production line and several productioncontrol …

ambiguity model to accommodate the investor's aversion to model uncertainty. The investor deals with specification doubts by … smaller continuation value. Unlike in the Bayesian framework, the hedging demand against model uncertainty may cause the … strategy with Epstein-Zin preferences and risk aversion chosen to match the same average portfolio holdings. This is true in …

robustness to asymptotic size distortion under local model misspecification, with both tests having asymptotic size equal to … nominal size under correct model specification. Robustness of the asymptotic size to model misspecification is therefore an …

individuals’preferences under risk. …