computational maximization. What results is a macro ecology, the internal operation of which entails natural volatility. What are … called policy actions, moreover, operate inside and not outside the ecology, and can create induce volatility within the …

Lederer's business cycle explanation from his 1925 contribution to Grundriss der Sozialokonomie on "Konjunktur und Krisen" and …

This paper examines the relationship between volatility shocks and preference shocks in an analytically tractable … endogenous growth model with recursive preferences and stochastic volatility. I show that there exists an explicit mapping … between volatility shocks and preference shocks, and a rise in volatility generates the same impulse responses of …

This paper examines the effects of time-varying volatility on welfare. I construct a tractable endogenous growth model … with recursive preferences, stochastic volatility, and capital adjustment costs. The model shows that a rise in volatility … a risk-averse household, volatility risk can increase or decrease welfare, depending on model parameters. When …