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Sousa, José de; Disdier, Anne-Célia; Gaigné, Carl - 2021

regularities by developing a new firmbased trade model wherein managers are risk averse. Higher volatility induces the reallocation …

Persistent link: https://www.econbiz.de/10013315484

Risk-Taking-Neutral Background Risk

Franke, Günter - 2013

We define a class of risk-taking-neutral (RTN) background risks. These background risks have the property that they … will not alter decisions made with respect to another risk, for individuals with HARA utility. If we wish to compare a … decision made with and without some exogenous background risk, it is often easier to compare the decision made to one made with …

Persistent link: https://www.econbiz.de/10013087730

The Ambiguity Triangle : Uncovering Fundamental Patterns of Behavior Under Uncertainty

Burghart, Daniel - 2015

risk preferences. Here, we develop an analogous tool for choice under uncertainty – the ambiguity triangle – and show that … characterize this heterogeneity with finite-mixture estimates of a one-parameter extension of Expected Utility Theory wherein 48 …

Persistent link: https://www.econbiz.de/10013019415

Offshoring under Uncertainty

Kohler, Wilhelm - 2018

We develop a theoretical framework to explain firms' offshoring decisions in the presence of uncertainty. This model highlights the role of labor market institutions in shaping a firm's ability to effectively react upon future shocks, yielding a sharp prediction of the prevalence of offshoring...

Persistent link: https://www.econbiz.de/10012910629

Should We Give Up After Solyndra? Optimal Technology R&D Portfolios Under Uncertainty

Webster, Mort - 2015

Global climate change and other environmental challenges require the development of new energy technologies with lower emissions. In the near-term, R&D investments, either by government or the private sector, can bring down the costs of these lower emission technologies. However, the results of...

Persistent link: https://www.econbiz.de/10013018283

Uncertainty and Fiscal Policy in an Asymmetric Monetary Union

Hefeker, Carsten - 2013

The paper examines the monetary-fiscal interactions in a monetary union model with uncertainty due to imperfect central bank transparency. We first show that monetary uncertainty disciplines fiscal policymakers and thereby reduces taxes, average inflation and output distortions. However, as more...

Persistent link: https://www.econbiz.de/10012753473

Climate Policies Under Climate Model Uncertainty : Max-Min and Min-Max Regret

Rezai, Armon - 2017

Temperature responses and optimal climate policies depend crucially on the choice of a particular climate model. To illustrate, the temperature responses to given emission reduction paths implied by the climate modules of the well-known integrated assessments models DICE, FUND and PAGE are...

Persistent link: https://www.econbiz.de/10012947620

Does Capital Tax Uncertainty Delay Irreversible Risky Investment?

Niemann, Rainer; Sureth, Caren - 2021

risk neutral investors are sensitive with respect to capital tax risk and may react in a surprising manner to a newly …, high capital tax risk delays high-risk innovative investment projects. To reduce unintended consequences of uncertain tax …

Persistent link: https://www.econbiz.de/10013315489

Psychologically-Based Voting with Uncertainty

Degan, Arianna; Li, Ming - 2021

We analyze a psychologically-based model of voter turnout in an election with common value and uncertainty. Our model yields distinctive comparative statics results. First, an increase in the proportion of informed citizens may cause the winning margin for the right candidate to either rise or...

Persistent link: https://www.econbiz.de/10013315570

What is the Best Environmental Policy? Taxes, Permits and Rules under Economic and Environmental Uncertainty

Angelopoulos, Konstantinos; Economides, George; … - 2021

We study the importance of uncertainty and public finance to the welfare ranking of three environmental policy instruments: pollution taxes, pollution permits and Kyoto-like numerical rules for emissions. The setup is the basic stochastic neoclassical growth model augmented with the assumptions...

Persistent link: https://www.econbiz.de/10013316232