financial variables changes the model dynamics and delivers price responses which are more in line with economic theory. A … second application shows that an exogenous increase in uncertainty affects disaggregated investment series more negatively …

This paper compares macroeconomic effects of Knightian uncertainty and risk using policy shocks for the case of Italy … measures for uncertainty and risk. The identification exploits the quasi-pessimistic behavior under ambiguity-aversion and the … framework. The main findings are threefold. First, the resulting shock time series for uncertainty and risk are uncorrelated …

shifted to examine the role of uncertainty in economic activity and on the monetary policy effectiveness. Both theoretical and … empirical studies suggest that uncertainty does influence monetary policy effectiveness. However, until now, empirical studies … are restricted to only developed countries. To this end, the present study examines the influence of uncertainty on …