process based upon either a robust control or a Bayesian (à la Brainard) approach towards parameter uncertainty. We use a … uncertainty and its taking into account via the robust control approach or the Bayesian method may induce to this trade-o¤. The ….ation variability) in the loss function and the robustness aversion of the policymaker which is associated to the robust control …

recently developed robust control techniques. Impulse response functions illustrate that uncertainty seems to be a rationale …

classification: 91B28, 49L20, 90C47, 60H10 Key words and phrases: optimal consumption, robust control, model uncertainty, incomplete …

This paper studies the quantitative implications of the interaction between robust control and stochastic volatility … conditional heteroskedasticity in consumption growth, improving the model’s ability to explain asset prices. In a robust control … model�s ability to explain asset prices. In a robust control framework, stochastic volatility in consumption growth …