benefits in the very long run. More specifically, we examine in an expected utility framework how the uncertainty on the growth …

We present a novel finding that high macroeconomic uncertainty is associated with greater accumulation of physical … capital, despite a contemporaneous reduction in investment. To reconcile this evidence, we show that high uncertainty predicts … the relationship between uncertainty, economic growth, and asset prices. In the model, precautionary saving is achieved by …

theory of consumption is suggested and discussed with respect to its implications for making a transition to more sustainable …