. Increases in uncertainty are related to rises in conditional volatility and a fall in the conditional median of CAPE ratio …

-or-sow" model of growth. High volatility of permanent shocks results in high precautionary saving in the safe asset and low … investment, or a "volatility trap." Namely, big savers invest relatively little. In contrast, low volatility of permanent shocks … leads to low precautionary saving and high or low investment, depending on the volatility of temporary shocks. Empirical …

volatility. For example, airlines are negatively affected by high oil prices while oil refiners benefit from them, but both are … sensitive to oil price volatility; retailers, in comparison, are not particularly sensitive to either the level or volatility of … oil prices. Second, we use the expected volatility of stock prices as implied by equity options to obtain forward …

hedge against uncertainty risk and earn lower risk premiums than value stocks. An investment-based asset pricing model …

the volatility for over hundred countries around the world. We used the monthly political risk data from the International … Country Risk Guide and formed three measures of political uncertainty which are government action, conflicts and quality of … governance. Further monthly volatility is constructed from the daily exchange rate returns within each month for the period of …