Cost-benefit analyses are commonly applied to assess the net welfare effects of policies to improve surface water quality. These analyses often disregard the biophysical fact that from implementation of policy measures to resulting improvements on water quality there will typically be...

Using stochastic simulations of the Reserve Bank of New Zealand s macroeconomic model, this paper examines the implications for monetary policy of uncertainty about the length of the monetary policy transmission lag. Uncertainty is examined from two perspectives. The first investigates the...

In this article we derive a microfounded model of money demand under uncertainty built on intertemporally optimizing risk-averse households. Deriving a complete solution of the optimization problem taking the intertemporal budget constraint into account leads to ambiguous effects w.r.t. to the...