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This note considers the treatment of risk and uncertainty in the recently established social cost of carbon (SCC) for analysis of federal regulations in the United States. It argues that the analysis of the US Interagency Working Group on Social Cost of Carbon did not go far enough into the tail...
Persistent link: https://www.econbiz.de/10010305979
This note considers the treatment of risk and uncertainty in the recently established social cost of carbon (SCC) for analysis of federal regulations in the United States. It argues that the analysis of the US Interagency Working Group on Social Cost of Carbon did not go far enough into the tail...
Persistent link: https://www.econbiz.de/10010309048
This paper uses a structurally estimated macroeconometric model, denoted the MC model, to evaluate inflation targeting in the United States. Various interest rate rules are tried with differing weights on inflation and output, and various optimal control problems are solved using differing...
Persistent link: https://www.econbiz.de/10010295291
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populated by both standard expected utility maximizers and by ambiguity-averse investors that trade in the market for a risky … asset. We show that, provided there is a sufficient amount of ambiguity, market breakdowns where large portions of traders … to ambiguity. When we analyze the effect of policy actions, we find that when a market has fallen into a state of …
Persistent link: https://www.econbiz.de/10010277898