We construct a model in which oligopolistic firms decide where to locate. Firms choose to locate either in a country where employment protection implies costly output adjustments or in one without adjustment costs. Using a two-period three-stage game with uncertainty it is demonstrated that...

We study the effects of growth volatility and inflation volatility on average rates of output growth and inflation for post-war U.S. data. Our results suggest that growth uncertainty is associated with higher average growth and lower average inflation. Inflation uncertainty is significantly...

Much of the evidence supporting the EllsbergÕs paradox comes from experiments on individual choice and judgement.In this study, we address the issue whether, in market experiments, there is a tendency for anomalous behaviour to disappear or to be reduced as a consequence of market experience...

We report the results of an experimental analysis of monetary policy decision-making under uncertainty. A large sample of economically literate students from the London School of Economics played a simple monetary policy game, as both individuals and committees of five players. Our findings -...

There is growing interest in economic uncertainty and its long run impact on investment. In previous work the authors established clear evidence of the negative impact of exchange rate uncertainty on investment in the G7, measured using a GARCH approach, and Pooled Mean Group Panel Estimation....