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 …

---with which different policy scenarios can be analyzed and compared. The model is a dynamic stochastic general-equilibrium setup … with a continuum of regions. Thus, it is a full stochastic general-equilibrium version of RICE, Nordhaus's pioneering multi …

arbitrarily over time. A novel feature of our technique is that it relies upon exploiting idiosyncratic risk, since theory …

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 …