activity on optimal consumption and investment. Here, learning introduces two sources of risk about future payoffs: structural … uncertainty and uncertainty from the anticipation of learning. The latter renders control and learning nonseparable. We present … decreases optimal consumption are provided. The effect depends on the strengths and directions of the two sources of risk, which …

uncertainty into Integrated Assessment Models (IAMs). Uncertainty is transformed into a risk-premium, damage-correction, region …. This risk premium quantifies what society would be willing to pay to insure against the uncertainty of the damages, and it …

Maximising expected value is the classic doctrine in choice theory under empirical uncertainty, and a prominent … proposal in the emerging literature on normative uncertainty, i.e., uncertainty about the standard of evaluation. But how … difference lies in the perspective from which expectations are taken, or equivalently the amount of uncertainty packed into the …

, such as decision under Knightian uncertainty, the dynamics of economic (in)stability, and the voters’ preferences over …

This paper studies Pareto-optimal risk-sharing arrangements in a private information economy with aggregate uncertainty … consumption contingent on aggregate shocks in financial markets. The first result is that if aggregate and idiosyncratic shocks … aggregate states in which consumption is more volatile. For instance, this can provide an efficiency justification for the …

This paper studies Pareto-optimal risk-sharing arrangements in a private information economy with aggregate uncertainty … consumption contingent on aggregate shocks in financial markets. The first result is that if aggregate and idiosyncratic shocks … aggregate states in which consumption is more volatile. For instance, this can provide an efficiency justification for the …

asset pricing uncertainty premia and design of robust macroeconomic policies. …