Risk and ambiguity in models of business cycles

A-Tier
Journal: Journal of Monetary Economics
Year: 2015
Volume: 69
Issue: C
Pages: 42-63

Authors (3)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We inject aggregate uncertainty — risk and ambiguity — into an otherwise standard business cycle model and describe its consequences. We find that increases in uncertainty generally reduce consumption, but they do not account, in this model, for either the magnitude or the persistence of the most recent recession. We speculate about extensions that might do better along one or both dimensions.

Technical Details

RePEc Handle
repec:eee:moneco:v:69:y:2015:i:c:p:42-63
Journal Field
Macro
Author Count
3
Added to Database
2026-01-24