Title:Risk and ambiguity in models of business cycles Author(s):BACKUS, David; FERRIERE, Axelle; ZIN, StanleyDate:2015Citation:
- Journal of monetary economics, 2015, Vol. 69, pp. 42-63
Type:ArticleAbstract: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 ...