Firms in many developing countries cite macroeconomic instability and political uncertainty as major constraints to … their growth. Economic theory suggests uncertainty can cause firms to delay investments until uncertainty is resolved. We … macroeconomic and political uncertainty. Demand for macroeconomic shock insurance was high; 36.7 percent of microentrepreneurs in …

between risk and uncertainty is implemented by applying the Gilboa-Schmeidler maxmin with multiple priors framework to lenders …, ultimate lenders and financial intermediaries. The model is used to investigate the impact of uncertainty about the likelihood … include: (i) An unanticipated increase in bailout uncertainty raises interest rates, the volume of defaults in both the real …

central result of the work by Backus and Driffill and by Barro is that the uncertainty may provide an incentive for the … in two ways. First, it considers a model in which the uncertainty about the government's preferences is somewhat more … exactly the policy measures taken by the government. The analysis of the more general model of uncertainty about preferences …

develop a model that incorporates central features of Knickerbocker's story-oligopoly, uncertainty, and risk aversion …-to establish the conditions required to generate follow-the-leader behaviour. We find that rival foreign investment will make risk …-neutral firms less inclined to move abroad once its rivals have done so. We show that the Knickerbocker prediction relies on risk …

inventions. We find that uncertainty about the profitability of investing in new inventions generates a basis for intermediation …

uncertainty, deterring potential trainees, or labour market imperfections that create external benefits for firms. This paper …

King-Fullerton methodology cannot assess the minimum-asset tax (MAT) because it cannot handle uncertainty. We present … an alternative based on option pricing, and show how carry-over rules, depreciation conventions and uncertainty affect …, the MAT does not reduce sectoral distortions; and (b) while high variance raises the MAT burden, high risk firms are not …