.S. economy where the policymaker faces uncertainty about model parameters. Uncertainty about parameters describing preferences … and technology implies not only uncertainty about the dynamics of the economy. It also implies uncertainty about the model … characteristics and performance of alternative monetary policy rules given the estimated uncertainty regarding parameter estimates. We …

We explore Knightian model uncertainty as an explanation for the observed excess persistence and attenuation in … types of uncertainty are identified: (i) unstructured model uncertainty captured in additive shock error processes that … result from omitted-variable misspecifications, and (ii) structured model uncertainty, where one or more parameters are …

) cases, these robust policies are more aggressive than the optimal policies absent model uncertainty. The specific robust … policies depend strongly on the formation of model uncertainty used, and we make some suggestions about which formulation is …

uncertainty in the economy, but also an apparent fundamental difference in the attitude toward uncertainty about models. To … information for two starkly differing versions of model uncertainty about the model and the data driving it: Bayesian uncertainty … that assumes known probability distributions for a model's parameters and the data and Knightian uncertainty that does not …

We explore Knightian model uncertainty as an explanation for the observed excess persistence and attenuation in … types of uncertainty are identified: (i) unstructured model uncertainty captured in additive shock error processes that … result from omitted-variable misspecifications, and (ii) structured model uncertainty, where one or more parameters are …

This paper explores Knightian model uncertainty as a possible explanation of the considerable difference between … estimated interest rate rules and optimal feedback descriptions of monetary policy. We focus on two types of uncertainty: (i …) unstructured model uncertainty reflected in additive shock error processes that result from omitted-variable misspecifications, and …

uncertainty in the economy, but also an apparent fundamental difference in the attitude toward uncertainty about models. To … information for two starkly differing versions of model uncertainty about the model and the data driving it: Bayesian uncertainty … that assumes known probability distributions for a model's parameters and the data and Knightian uncertainty that does not …

, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood … between risk and uncertainty is implemented by applying the Gilboa-Schmeidler (1989) maxmin with multiple priors framework to … analysis include: (i) An unanticipated increase in bailout uncertainty raises interest rates, the volume of defaults in both …