This paper presents a new framework for analyzing inequality that moves beyond the anonymity postulate. We estimate the determinants of sectoral choice and the joint distributions of outcomes across sectors. We determine which components of realized earnings variability are due to uncertainty...

Many governments use technology incentives as an important component of their greenhouse gas abatement strategies. These “carrots” are intended to encourage the initial diffusion of new, greenhouse-gas-emissions-reducing technologies, in contrast to carbon taxes and emissions trading which...

In this paper we perform a meta-analysis on empirical estimates of the impact between investment and uncertainty. Since the outcomes of primary studies are largely incomparable with respect to the magnitude of the effect, our analysis focuses on the direction and statistical significance of the...

The article clarifies the substantive aspects of emergence of stability in dynamics of development of economic entities. The condition of stability demonstration in economic processes through the measures of uncertainty and certainty is provided and proved. The tetralistic nature of stability as...

The objective of this paper is to study when and how much labor supply and savings of heirs respond to inheritances. We estimate fixed effects models following direct heirs, inheriting in 2004, during the years 2000–2008 using Swedish panel data. Our first main result is that the more the heir...

We study whether the increased income uncertainty in the US over the last quarter-century had a negative impact on household welfare by looking at variability of household consumption growth. We are particularly interested in understanding the effect of greater uncertainty on the liquidity...

In the insurance literature it is often argued that private markets can provide insurance against ‘risk’ but not against ‘uncertainties’ in the sense of Knight (1921) or Keynes (1921). This claim is at odds with the standard economic model of risk exchange which, in assuming that...

This paper theoretically assesses the role that uncertainty plays in the intensity of conflicts. The standard two-player rent-seeking contest model (Tullock, 1980) is extended to allow for privately known subjective values of the prize. The conflict is modeled as a Bayesian game on which each...

The asymmetry between the patient as a layman and the physician as an expert is a key element in health economics. However, a change to a higher degree of patient autonomy has taken place. Furthermore, there is a consensus in a positive correlation between general education and productivity of...

This paper applies recent results and advances in the field of ambiguity theory to adverse selection in a delegation process. Our results are the following ones: i) a relevant second-best contract induces no production distortion considering the efficient agent. This alike to the standard case....