Frydman, Roman; Goldberg, Michael D.; Mangee, Nicholas - 2015
the consumption-based specification of the risk premium. The relevance of Knightian uncertainty is inconsistent with all … Hypothesis, which recognizes the relevance of Knightian uncertainty in driving outcomes in real-world markets. Our novel data is … distribution. This paper assesses the empirical relevance of this premise using a novel data set. We find that Knightian …