We introduce learning in a Brock-Mirman environment and study the effect of risk generated by the planner's econometric … activity on optimal consumption and investment. Here, learning introduces two sources of risk about future payoffs: structural … decreases optimal consumption are provided. The effect depends on the strengths and directions of the two sources of risk, which …

uncertainty into Integrated Assessment Models (IAMs). Uncertainty is transformed into a risk-premium, damage-correction, region …. This risk premium quantifies what society would be willing to pay to insure against the uncertainty of the damages, and it … highly sensitive to the coefficient of relative risk aversion. Once the climate change damage function incorporates the risk …

) and the General Theory (1936), as well as follow-ups in the post-Keynesian approaches and others dealing with "fundamental …

which, compared with the risk-adjusted cost of capital, correctly signals wealth creation. For choosing between two mutually … exclusive projects, we derive an incremental AROI and an incremental risk-adjusted cost of capital, by means of which two … unequal-risk projects can be correctly compared. Iterating the incremental procedure, we show that the AROI approach correctly …

, and investment measures. We also document similar effects for aggregate equity issuance. Consistent with theory, we find …

structure. Recently the theory has however started to merge real options theory with game theory to offer alternative … show that the more concentrated industries are not significantly affected. Irreversibility, as predicted by theory, has a … downward adjustment costs of capital. This seems in line with some of the recent developments proposed by the theory …