practical prevalence of uncertainty. Theoretically complete models conceal it. As a remedy a scenario-based procedure of coping … with uncertainty can prescribe how the boundedly rational decision-maker should proceed from her or his internal point of … view. Though models of substantive rationality cannot serve as guidance for decision-making under uncertainty, we can …

uncertainty on firms' decisions and market outcomes. We construct alternative measures of uncertainty based on survey of … index, and fuel prices. Our results indicate that greater uncertainty has a negative impact on growth of employment and the … generally non-existent or weaker. Our results suggest that to truly understand the effects of uncertainty on firms' decisions …

structural VAR to achieve identification in the data. We proxy for ambiguity using a measure of macroeconomic uncertainty and …, and uncertainty. We find that shocks to uncertainty significantly increase international investors' risk aversion …

Measuring economic uncertainty is crucial for understanding investment decisions by individuals and firms …. Macroeconomists increasingly rely on survey data on subjective expectations. An innovative approach to measure aggregate uncertainty … uncertainty. The results provide evidence for the existence of considerable heterogeneity in individuals' response behavior and …

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 significantly raises …

Uncertainty is acknowledged to be a source of economic fluctuations. But, does the type of uncertainty matter for the … economy's response to an uncertainty shock? This paper offers a novel identification strategy to disentangle different types … of uncertainty. It uses machine learning techniques to classify different types of news instead of specifying a set of …