A review essay of Roman Frydman & Michael D. Goldberg's Beyond Mechanical Markets: Asset Price Swings, Risk, and the …

Motivated by the US Fiscal Cli¤ in 2012, this paper considers the short- and longer term impact of uncertainty … generated by scal policy. Empirical evidence shows increases in economic policy uncertainty lower investment and employment …. Investment that is longer-lived and subject to a longer planning horizon responds to policy uncertainty with a lag, while capital …

In light of the rising political and economic uncertainty in Europe, we aim to provide a basic understanding of the … impact of economic policy uncertainty and financial market uncertainty on a set of macroeconomic variables such as production … may help to identify avenues for further research based on non-linear processes. We find that stock market uncertainty …

Uncertainty (EPU). We use a TVP-FAVAR model with hierarchical priors on the hyperparameters to investigate the effect of EPU on a … uncertainty. Fifth, we find that EPU shocks affect monetary policy decisions. Sixth, we provide evidence that the transmission of …

We study the time-varying impact of Economic Policy Uncertainty (EPU) on the US Economy by using a VAR with time …

In light of the rising political and economic uncertainty in Europe, we aim to provide a basic understanding of the … impact of economic policy uncertainty and financial market uncertainty on a set of macroeconomic variables such as production … may help to identify avenues for further research based on non-linear processes. We find that stock market uncertainty …

sentiment (considering both confidence and uncertainty) and economic activity. Second, we review existing empirical measures of … sentiment, in particular consumer confidence, stock market volatility (SMV) and Economic Policy Uncertainty (EPU), on monthly …

Shleifer (2010), overreaction and confidence are affected by uncertainty, as a news effect interacts with an uncertainty effect … the conditional uncertainty, changes in uncertainty surrounding current and past beliefs affect the severity of the DE …) overconfidence in subjective uncertainty. An analytical RBC model featuring Smooth DE accounts for overreaction and overconfidence in …

When agents' information is imperfect and dispersed, existing measures of macroeconomic uncertainty based on the … dispersion. The former driver increases uncertainty and reduces agents' disagreement (agreed uncertainty). The latter increases … both uncertainty and disagreement (disagreed uncertainty). We use these implications to identify empirically the effects of …