We propose an equilibrium model of asset prices in which agents learn about the mean and the volatility of the endowment process and differ in their concerns about parameter uncertainty. We show that, in equilibrium, following unexpected bad and good news about economic outcomes (i) uncertainty...

In this paper we discuss optimal renewable energy investment (in wind and solar technology) under uncertainty in a real options approach framework. We consider the combined impact of uncertain production volumes associated with renewable energy power output, policy uncertainty via uncertain...