This survey features three parts. The first one reviews the most recent literature on the
relationship between domestic (ie, country‐specific) uncertainty and the business cycle, and …

We survey literature on ambiguity with an emphasis on recent applications in
macroeconomics and finance. Like risk, ambiguity leads to cautious behavior and …

Uncertainty about the future rises in recessions. But is uncertainty a source of business
cycles or an endogenous response to them, and does the type of uncertainty matter? We …

We investigate the role of economic uncertainty in the cross-sectional pricing of individual
stocks and equity portfolios. We estimate stock exposure to an economic uncertainty index …

We examine the effect of economic policy uncertainty on the relation between investment
and the cost of capital. Using the news-based index developed by Baker et al.(2016) for …

We review the literature on uncertainty shocks and business cycle research. First, we
motivate the study of uncertainty shocks by documenting the presence of time-variation in …

We study the transmission of monetary policy through risk premia in a heterogeneous agent
New Keynesian environment. Heterogeneity in households' marginal propensity to take risk …

Unemployment is high when financial discounts are high. In recessions, the stock market
falls and all types of investment fall, including employers' investment in job creation. The …

This paper studies the impact of time‐varying idiosyncratic risk at the establishment level on
unemployment fluctuations over 1972–2009. I build a tractable directed search model with …

We show that policy uncertainty about how the rising public debt will be stabilized accounts
for the lack of deflation in the US economy at the zero lower bound. We first estimate a …