end, we derive existence and uniqueness conditions for otherwise linear models with OBCs. Our main result gives necessary …

source of uncertainty in a small open economy. We prove the existence of an optimal consumption path. We exploit that the …

We present the first necessary and sufficient conditions for the existence of a unique perfect-foresight solution … conditions on the existence of a solution in such models, and provide a proof of the inescapability of the “curse of …

belief-driven recessions. To aid in finding policies that avoid this, we derive existence and uniqueness conditions for …. We also derive equilibrium existence conditions under rational expectations for arbitrary non-linear models. …

In this paper, we establish an axiomatically founded generalized recursive smooth ambiguity model that allows for a … separation among intertemporal substitution, risk aversion, and ambiguity aversion. We axiomatize this model using two approaches … Seo (2009). We characterize risk attitude and ambiguity attitude within these two approaches. We then discuss our model …

between the set of relevant measures, shown by KMS [21] to reflect only perceived ambiguity, and the set of measures (which we … perceived ambiguity. Regarding symmetry assumptions, we show that, under relatively mild conditions, a variety of preference … stringent. Only when it is satisfied may the Bewley set be interpreted as reflecting only perceived ambiguity and not also taste …

Ambiguity, also called Knightian or model uncertainty, is a key feature in financial modeling. A recent paper by … Maccheroni et al. (2004) characterizes investor preferences under aversion against both risk and ambiguity. Their result shows …