This paper analyses the international spill-overs of uncertainty shocks originating in the US. We estimate an open economy, structural factor-augmented vector autoregression (FAVAR) model that identifies US uncertainty shocks and estimates the impact of these uncertainty shocks on the US...

Recent research suggests that uncertainty has detrimental long-run effects on output. We provide empirical evidence that this is not always the case. We show that uncertainty can have positive long-run effects on output when an uncertainty shock leads to an exchange rate depreciation and...

If institutions are designed to create order and reduce uncertainty, poorly-functioning institutions will create `excess' uncertainty. It follows then a reform of such poorly-functioning institutions will only be successful if uncertainty is reduced. This paper, using Bayesian Structural...