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Barlevy, Gadi - 2010

This paper considers the design of macroeconomic policies in the face of uncertainty. In recent years, several economists have advocated that when policymakers are uncertain about the environment they face and find it difficult to assign precise probabilities to the alternative scenarios that...

Persistent link: https://www.econbiz.de/10010292205

Coarse contingencies and ambiguity

Epstein, Larry G.; Marinacci, Massimo; Seo, Kyoungwon - In: Theoretical Economics 2 (2007) 4, pp. 355-394

The paper considers an agent who must choose an action today under uncertainty about the consequence of any chosen action but without having in mind a complete list of all the contingencies that could influence outcomes. She conceives of some relevant (subjective) contingencies but she is aware...

Persistent link: https://www.econbiz.de/10011599392

Judged knowledge and ambiguity aversion

Keppe, Hans-Jürgen; Weber, Martin - 1991

Competence has been recently proposed as an explanation for the degree of ambiguity aversion. Using general knowledge …

Persistent link: https://www.econbiz.de/10011653568

Ordering ambiguous acts

Jewitt, Ian; Mukerji, Sujoy - 2017

ambiguity averse relation. First, we define two notions of more ambiguous with respect to such a class. A more ambiguous (I) act … makes an ambiguity averse decision maker (DM) worse off but does not affect the welfare of an ambiguity neutral DM. A more … ambiguous (II) act adversely affects a more ambiguity averse DM more, as measured by the compensation they require to switch …

Persistent link: https://www.econbiz.de/10011927995

Ambiguity and time-varying risk aversion in sovereign debt markets

Grosse Steffen, Christoph; Podstawski, Maximilian - 2016

This paper introduces changes in the level of ambiguity as a complementary source of time-varying risk aversion. We … ambiguity raises investors' risk aversion. The effect is quantified in an application to European sovereign debt markets using a … structural VAR to achieve identification in the data. We proxy for ambiguity using a measure of macroeconomic uncertainty and …

Persistent link: https://www.econbiz.de/10011520565

Uncertainty : a diagrammatic treatment

Dow, Sheila C. - 2015

In spite of superficial similarities, the way in which uncertainty is understood as a feature of the crisis by mainstream economics is very different from Keynesian fundamental uncertainty. The difference stems from the mainstream habit of thinking in terms of a full-information benchmark, where...

Persistent link: https://www.econbiz.de/10011279689