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 …

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 …

Using a new survey of firms in New Zealand, we document how exogenous variation in the macroeconomic uncertainty … macroeconomic uncertainty of some firms. The effects on their decisions relative to their initial plans as well as relative to an … technologies or open new facilities. These ex-post effects of uncertainty are similar to how firms say they would respond to higher …

Purpose - The purpose of this paper is to examine the effect of economic policy uncertainty (EPU) of China on …