aggregate volatility. Fully rational and risk averse economic agents expect macro-level dynamics to be characterized by a …

In this paper we introduce a new, analytically tractable model for decision-making under risk in which psychological … even the simplest, such as expected utility theory, able to describe the behavior of decision-makers within a more … characteristics related to the degree of optimism or pessimism of the decision-maker are considered. The model we propose, which is …

This paper studies the export decision of risk-averse firms in a model featuring aggregate uncertainty and no capital … domestic and foreign aggregate shocks is negative and when their degree of risk-aversion is higher. Counterfactual experiments …