), <em>Uncertainty within Economic Models</em> includes articles adapting and applying robust control theory to problems in … market prices of model uncertainty. The chapters discuss ways of calibrating agents' fears of model misspecification in …, Prices of Risk, and Model Detection</li> <li>Robust Control and Model Uncertainty</li> <li>Robust Control and Model …

applications to asset pricing uncertainty premia and design of robust macroeconomic policies. …

The standard theory of decision making under uncertainty advises the decision maker to form a statistical model linking …

of uncertainty. This is where macroeconomics comes into play. The economy-wide shocks, the primary concern of … connecting macroeconomic uncertainty to financial markets. A risk premium reflects both the price of risk and the degree of …

This paper studies alternative ways of representing uncertainty about a law of motion in a version of a classic … macroeconomic targetting problem of Milton Friedman (1953). We study both “unstructured uncertainty” – ignorance of the conditional … distribution of the target next period as a function of states and controls – and more “structured uncertainty” – ignorance of the …