This paper exploits the Lucas’ (1973) signal extraction model to study the effect of uncertainty in the output … that the implication of the uncertainty is two-fold: firstly, it causes the interaction of output and volatility of …

This paper assesses the impact of uncertainty about the true state of the economy on monetary policy in South Africa … since the adoption of inflation targeting. The paper also analyses the impact of uncertainty about the conditions in … decisions over and above using inflation and output as indicator variables. The results indicate that the effect of uncertainty …

This paper examines if overreaction of oil price forecasters is related to uncertainty. Furthermore, it takes into … is markedly reduced when high levels of uncertainty prevail. On the other hand, noisy signals and positive oil price …

disappear when controlling for measures of uncertainty such as stock price volatility. Swiss bond prices rose when stock market … volatility was high thus offering insurance in times of uncertainty. …

Kangoye. It follows that in the presence of foreign aid uncertainty, governments could be constrained to improve governance …

Financial markets are central to the transmission of uncertainty shocks. This paper documents a new aspect of the … interaction between the two by showing that uncertainty shocks have radically different macroeconomic implications depending on … uncertainty is proxied by the (unobserved) volatility of the structural shocks, and a regime change occurs whenever credit …

stabilization and agents face uncertainty about the nature of these deviations. When observing a deviation, agents conduct Bayesian … prompt return to the active regime, macroeconomic uncertainty is low, welfare is high. However, if a deviation persists …, agents’ beliefs start drifting, uncertainty accelerates, and welfare declines. If the duration of the deviations is announced …

production, consumption and investment. In a system of equations, the study reveals that risk aversion, uncertainty and … dynamic characterisation of the link between economic growth, risk aversion, uncertainty and variability in industrial … hours worked and economic growth. Uncertainty and risk aversion induce increment in variability of business cycle components …