The macroeconomic data of the last fifty years have overturned at least two of Kaldor's
famous stylized growth facts: constant interest rates, and a constant labor share. At the same …

A common practice in empirical macroeconomics is to examine alternative recursive
orderings of the variables in structural vector autoregressive (VAR) models. When the …

In this paper, we argue that macroeconomic uncertainty shocks cause a persistent decline in
economic activity, investment in R&D, and total factor productivity. After providing empirical …

This paper studies the role of uncertainty in a search-and-matching framework with risk-
averse households. A mean-preserving spread to future productivity contracts current …

We employ a nonlinear proxy‐VAR approach to document the large response of real activity
to a financial uncertainty shock during and in the aftermath of the Great Recession. We …

This paper uses a nonlinear vector autoregression and a non-recursive identification
strategy to show that an equal-sized uncertainty shock generates a larger contraction in real …

We introduce a completely abstract dynamic programming framework in which dynamic
programs are sets of policy operators acting on a partially ordered space. We provide an …

This paper extends the core results of discrete time infinite horizon dynamic programming to
the case of state-dependent discounting. We obtain a condition on the discount factor …

The existing literature on carbon policy analysis in a random environment focuses on the
existence of the level (first-moment) shocks, whereas recent research emphasized the …

This paper shows how uninsurable unemployment risk is crucial to qualitatively and
quantitatively match macro responses to uncertainty shocks. Empirically, uncertainty shocks …