-by-state utility deviations from the mean, and rho(d) is a measure of (aversion to) dispersion that corresponds to an uncertainty … premium. The key feature of these mean-dispersion preferences is that they exhibit constant absolute uncertainty aversion … dispersion function rho(dot) correspond to known models, to probabilistic sophistication, and to some new notions of uncertainty …

conditions concerning the structure of uncertainty and preferences, society has an indefinitely large expected loss from high …-making under uncertainty. However, the conditions necessary for the Dismal Theorem to hold are limited and do not apply to a wide …

under this kind of uncertainty, with preferences that satisfy the expected utility hypothesis. Various social welfare … ignore the uncertainty concerning the possible disappearance of the human species in the future. We conclude with some …

The sensitivity of U.S. aggregate investment to shocks is procyclical: the response upon impact increases by … a counterexample to the claim that microeconomic investment lumpiness is inconsequential for macroeconomic analysis. …

smoothing in the investment response to aggregate shocks. The remaining 40% is explained by general equilibrium forces. The … particular, booms feed into themselves. The longer an expansion, the larger the response of investment to an additional positive … shock. Conversely, a slowdown after a boom can lead to a long lasting investment slump, which is unresponsive to policy …