be derived by quadratic approximation. This leaves uncertainty in the basic three-equation model. After adding exogenous … AR(1) processes, I examine the results by numerical simulation. First, I derive a reduced-form solution for the nominal …, impulse response functions show the adjustments over time after a cost shock. As a result, accounting for uncertainty can lead …

). Exogenous uncertainty over the size of the negotiated amount of water is introduced to capture the fact that water availability …

). Exogenous uncertainty over the size of the negotiated amount of water is introduced to capture the fact that water availability …

most economic situations, uncertainty crucially affects also bargaining processes. Therefore, in our analysis, we introduce … uncertainty over the size of the pies to be shared and assess the impacts on players' strategic behaviour. Our results confirm … that uncertainty crucially affects players' behaviour and modifies the likelihood of a self-enforcing agreement to emerge …

Specially in the case of scenarios under uncertainty, the efficient management of risk when matching assets and … maximises the overall benefit over a time horizon. To solve this stochastic optimisation problem, a simulation …-Carlo simulation is employed to estimate the risk of failing to pay due liabilities. The simulation results allow us to set a safety …

times. We show that the rise in the aggregate savings ratio is driven by increases in uncertainty, rather than tighening of …