rates. The single agent, in a dynamic exchange economy, treats the conditional uncertainty about the consumption and … dividends next period as ambiguous. We calibrate the agent's ambiguity aversion to match only the first moment of the risk …-free rate in data and measure the uncertainty each period conditional on the actual, observed histroy of (U.S.) macroeconomic …

rates. The single agent, in a dynamic exchange economy, treats the conditional uncertainty about the consumption and … dividends next period as ambiguous. We calibrate the agent's ambiguity aversion to match only the first moment of the risk …‐free rate in data and measure the uncertainty each period conditional on the actual, observed history of (U.S.) macroeconomic …

We inject aggregate uncertainty — risk and ambiguity — into an otherwise standard business cycle model and describe its … consequences. We find that increases in uncertainty generally reduce consumption, but they do not account, in this model, for …