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 … Expectations Hypothesis, which recognizes the relevance of Knightian uncertainty in driving outcomes in real-world markets. Their … distribution. This paper assesses the empirical relevance of this premise using a novel data set. The authors find that Knightian …