a framework to explore, evaluate, and optimize robust decision rules that explicitly account for estimation uncertainty … to misspecification, and ultimately leads to post-decision disappointment. Using statistical decision theory, we develop … a decision-maker directly accounts for uncertainty in the model’s transition dynamics. …

robust model for small amounts of uncertainty and analyze the effect of robustness on optimal trading strategies and … liquidation costs. In particular, in our model ambiguity aversion is observationally equivalent to increased risk aversion. This …

Previous work suggests a general uncertainty surrounding the migration process acts as a barrier to outmigration. In … this paper, we argue that this barrier is exacerbated when relative economic policy uncertainty is higher in the target … migration from 12 European countries between 1997 and 2012 and test the premise that a higher relative uncertainty in the origin …

-)variance of power plant profits. If investors are risk-averse, these differ- ences lead to divergent investment portfolios …, breaking the equivalence of price- and quantity-based policy instruments under risk-neutrality. Using the European power sector … diversification value of these assets. Uncertainty about the stringency of carbon taxes leads to lower shares of fossil fuel assets …

Measuring economic uncertainty is crucial for understanding investment decisions by individuals and firms …. Macroeconomists increasingly rely on survey data on subjective expectations. An innovative approach to measure aggregate uncertainty … uncertainty. The results provide evidence for the existence of considerable heterogeneity in individuals' response behavior and …