This paper builds a model to show how increases in aggregate uncertainty - an uncertainty shock - can generate recessions. In the model managers can alter the amount of firm-specific risk they face by choosing what stochastic Total Factor Productivity (TFP) processes to run their firm with. The...

In this paper we identify optimal strategies for the investment in power generation assets. The investments are characterized by multiple available technologies whose economic value is driven by a technology-specific combination of several underlying assets, such as the price of fuel,...