A growing body of evidence suggests that uncertainty is counter cyclical, rising sharply in recessions and falling in … booms. But what is the causal relationship between uncertainty and growth? To identify this we construct cross country panel …

We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic … uncertainty is robustly countercyclical, rising sharply during recessions, particularly during the Great Recession of 2007 …-2009. Second, we quantify the impact of time-varying uncertainty on the economy in a dynamic stochastic general equilibrium model …

We derive robust predictions on the effects of uncertainty on short run investment dynamics in a broad class of models … of UK firms and a stock returns-based measure of uncertainty. As predicted we find that uncertainty reduces firms …

This paper shows that, contrary to common beliefs, the real options effect of uncertainty plays no role in the long run …

This paper shows that, contrary to common beliefs, the real options effect of uncertainty plays no role in the long run …

We propose uncertainty shocks as a new shock that drives business cycles. First, we demonstrate that microeconomic … uncertainty is robustly countercyclical, rising sharply during recessions, particularly during the Great Recession of 2007 …-2009. Second, we quantify the impact of timevarying uncertainty on the economy in a dynamic stochastic general equilibrium model …

This paper shows that, contrary to common beliefs, the real options effect of uncertainty plays no role in the long run …

This paper shows that, contrary to common beliefs, the real options effect of uncertainty plays no role in the long run …