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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 …
Persistent link: https://www.econbiz.de/10005504603
In this Paper we develop a model of intertemporal portfolio choice where an investor accounts explicitly for the possibility of model misspecification. This work is motivated by the difficulty in estimating precisely the probability law for asset returns. Our contribution is to develop a...
Persistent link: https://www.econbiz.de/10005504745
develop a model that incorporates central features of Knickerbocker's story-oligopoly, uncertainty, and risk aversion …
Persistent link: https://www.econbiz.de/10005497737
inventions. We find that uncertainty about the profitability of investing in new inventions generates a basis for intermediation …
Persistent link: https://www.econbiz.de/10005498006
uncertainty, deterring potential trainees, or labour market imperfections that create external benefits for firms. This paper …
Persistent link: https://www.econbiz.de/10005498076
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 …
Persistent link: https://www.econbiz.de/10005498170
then used to characterize the evolution of expectations and uncertainty, the propagation of the shocks, the contribution of …, I show how the methods can be used to capture the link between uncertainty and the state of the economy. Finally, I …, welfare, and uncertainty. All results are derived analytically, do not require numerical integration, and are therefore …
Persistent link: https://www.econbiz.de/10011083330
This paper shows that uncertainty can lead firms to follow a gradual internationalization process. We describe a model …
Persistent link: https://www.econbiz.de/10011083883
We provide theoretical and empirical evidence that policy uncertainty can significantly affect firm level investment … and entry decisions in the context of international trade. When market entry costs are sunk, policy uncertainty can create … a real option value of waiting to enter foreign markets until conditions improve or uncertainty is resolved. Using a …
Persistent link: https://www.econbiz.de/10011083993
A fruitful emerging literature reveals that shocks to uncertainty can explain asset returns, business cycles and … financial crises. The literature equates uncertainty shocks with changes in the variance of an innovation whose distribution is … uncertainty as the conditional standard deviation of GDP growth, which captures uncertainty about the distribution’s estimated …
Persistent link: https://www.econbiz.de/10011084011