We study a commons problem under uncertainty, where individual actions affect the risk of a future damage event. We … show that for risk-averse agents, an extra risk on the amount of the damage induces more precautionary actions in Nash … equilibrium. Similarly, for prudent agents an extra risk in all states of the world induces more precautionary actions in Nash …

We investigate whether the macroeconomic effects of government spending shocks vary with the level of uncertainty … effects in tranquil times but is contractionary during uncertain times. The endogenous reaction of macroeconomic uncertainty … other types of government spending, research and development expenditures reduce uncertainty and have an expansionary effect …