ambiguity leads to portfolio inertia and excess volatility. Specifically, when news is surprising, then investors may not react … volatility …

ambiguity can explain high expected stock market returns and excess volatility and kurtosis of stock market returns. Moreover …

, thereby lowering interest rate volatility and contributing to economic stability. Most empirical studies support this view … volatility. To extend the literature, I use the Dincer and Eichengreen (2007) transparency index for twenty-four economies of … varying income and examine the impact of transparency on both predictability and market volatility. I find that higher …

Sudden big price changes are followed by periods of high and persistent volatility. I develop a tractable dynamic … trading process. Both mechanisms operate simultaneously to generate high and persistent volatility. The resulting information …

aggregate volatility. Fully rational and risk averse economic agents expect macro-level dynamics to be characterized by a … specific degree of volatility. Given this expectation the agents respond rationally by building up higher buyer stock savings … in response to perceived volatility. The economy, given the change in individual behavior, responds, the process of …

volatility for a given distribution of the payoff states. We show that the maximal aggregate volatility is attained in a noise …

greater risk-free rate volatility. But raising the prior uncertainty on dividend growth rates has ambiguous effects on the …

Many important statistics in macroeconomics and finance — such as cross-sectional dispersions, risk, volatility, or …