We implement a long-horizon static and dynamic portfolio allocation involving a risk-free and a risky asset. This model … estimates to account for parameter uncertainty. We find that for most European countries the dividend-price ratio and inflation … the long-horizon allocation. Parameter uncertainty plays a second-order role, dominated by strong variation in the dynamic …

Recently there has been a resurgence of interest in the study of optimal monetary policy under uncertainty. This book …

optimal monetary policy in the presence of uncertainty, with both open- and closed-economy frameworks considered. The authors …