The significance of uncertainty in policies related to economic decisions is higher than ever
before in today's interconnected world. This study contributes to existing research by …

Consumption is the largest component of GDP. Since the 1950s, the life cycle and the
permanent income models have constituted the main analytical tools to the study of …

Uncertainty is an amorphous concept. It reflects uncertainty in the minds of consumers,
managers, and policymakers about possible futures. It is also a broad concept, including …

The book takes a broad view of the subject matter of acroeconomics. A substantial portion of
the book is devoted to economic growth, and separate chapters are devoted to the natural …

How should firms decide whether and when to invest in new capital equipment, additions to
their workforce, or the development of new products? Why have traditional economic models …

This chapter develops a dynamic general equilibrium model that is intended to help clarify
the role of credit market frictions in business fluctuations, from both a qualitative and a …

W HY DO PEOPLE save? J. Maynard Keynes (1936) lists eight motives which we reproduce
here with one addi-tion: 1 1." To build up a reserve against unforeseen contingencies"(the …

This paper extends the theory of investment under uncertainty to incorporate fixed costs of
investment, a wedge between the purchase price and sale price of capital, and potential …

How can price elasticities be identified when agents face optimization frictions such as
adjustment costs or inattention? I derive bounds on structural price elasticities that are a …

Recent theoretical work has shown the importance of measuring microeconomic uncertainty
for models of both general and partial equilibrium under imperfect insurance. In this paper …