compare these optimal rules against plausible alternatives. Model uncertainty is shown to be a substantial problem; the …

This paper aims an empirical investigation of uncertainty in the Euro Zone as well as the US. For this purpose I … conduct a factor analysis of uncertainty measures starting in 2001 until the end of 2011. I use survey-based data provided by … implied volatility of stock market movements. Each measure shows an increase in uncertainty during the last years marked by …

) cases, these robust policies are more aggressive than the optimal policies absent model uncertainty. The specific robust … policies depend strongly on the formation of model uncertainty used, and we make some suggestions about which formulation is …

This paper analyzes the role of uncertainty in a multi-sector housing model with financial frictions. We include time … varying uncertainty (i.e. risk shocks) in the technology shocks that affect housing production. The analysis demonstrates that …