We introduce learning in a Brock-Mirman environment and study the effect of risk generated by the planner’s econometric activity on optimal consumption and investment. Here, learning introduces two sources of risk about future payoffs: structural uncertainty and uncertainty from the anticipation of learning. The latter renders control and learning nonseparable. We present two sets of results in...

We present a novel argument demonstrating that when trade is characterized by uncertainty the comparative advantages doctrine is misleading and a positive level of diversification is growth enhancing. Applying a result developed in the mathematical biological literature, we show that, in Ricardian trade model in which capital available for investment depends on previous periods returns, incompl...

this paper presents a theoretical model in which the stock growth rate of durable goods has stochastic fluctuation over time. it concludes that a social planner increases the expected percentage rate of production since uncertainty increases the user cost from consumer’s point view.

this paper presents an analytic procedure for the value added to different production levels with different policy options. the approach is stochastic and thus provides a framework for informed decision-making on productivity growth under uncertainty conditions. the model was applied to data collected from a firm and re-sults recommend that the firm should redevelop if in diversification and sy...

In this paper we show that measures of economic uncertainty (conditional volatility of consumption) predict and are predicted by valuation ratios at long horizons. Further we document that asset valuations drop as economic uncertainty rises — that is, financial markets dislike economic uncertainty. Moreover, future earnings growth rates are sharply predicted by current price-earnings ratios. It...

Abstract The reliability of the damage tolerance approach to engineering design is affected by numerous sources uncertainty that can lead unsafe predictions, in turn jeopardizing safety structures. This work presents a robust stochastic framework for fatigue crack-growth predictions applied round bar under tension–compression loading conditions. Multi-source uncertainties were taken into accoun...

This paper analyses uncertainty as one of the factors that affect public debt-growth nexus. We put forward a hypothesis mediates effect debt on economic growth. The empirical examination mediating is based neoclassical growth equation and consistent with specifications previously used to analyse sources heterogeneity in relationship. Since part financial risk, which closely related sector stabi...