This paper investigates the effects of interbank rate uncertainty on lending rates to euro area firms. We introduce a … novel measure of interbank rate uncertainty, computed as the cross-sectional dispersion in interbank market rates on … overnight unsecured loans. Using proprietary bank-level data, we find that interbank rate uncertainty signi cantly raises …

We examine the transmission of global macro-financial uncertainty to economic activity depending on the current state … of the banking sector. Previous literature suggests that credit supply and uncertainty shocks are important drivers of … surprisingly simple measure of macro-financial uncertainty at the global level while the state of credit intermediation is being …

market set -up that accounts for fundamental uncertainty. Nonetheless, the market is designed so that its total value is …

Uncertainty shapes the trajectory of business cycles and remains a central research topic in Macroeconomics. When … studying the impact of uncertainty on the economy, economists use different uncertainty measures. While all indicators … approximate uncertainty along some certain dimension, none of the indicators directly captures Knightian Uncertainty. According to …

introduce relevant dynamic elements to the general problem of decisions under uncertainty. We analyze actions that may have … essential to establish the direction of the bias. We also use Epstein's framework to look at issues such as uncertainty about … cost of restoration and uncertainty about irreversibility. All of the results to this point are for models with just two …

This paper investigates the effects of uncertainty on the macro economy by replicating its micro effects on individual … the two scenarios through the empirical macroeconomic uncertainty index. The higher the macroeconomic uncertainty is, the … appropriate level of ambiguity aversion outperforms the benchmark model with no uncertainty in fitting the US output growth rate …

This paper examines how time to build alters strategic investment behaviour under oligopoly. Facing demand uncertainty …, firms decide whether to invest early or wait until uncertainty has been resolved. A game that captures time …

The impact of uncertainty on firms' investment outlays is subject to an ongoing debate. Theory identifies several … channels. Irreversibility, financing constraints and risk aversion make a negative relationship between uncertainty and … investment likely. On the other hand, the ability of firms to adapt after uncertainty is resolved can make a risky strategy more …

two forms of ex-post decision making according to individual rationality: 1. ambiguity 2. uncertainty. An elaboration of …

of data is an increasingly important source of uncertainty about the state of the economy and offer an alternative … channel of uncertainty - data uncertainty. This paper adds on the uncertainty literature and focuses on data uncertainty …, which originates in the revision structure of data. We find that apart from the general and economic policy uncertainty, the …