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Economic Effects of Uncertainty

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  • Michele Piffer

Abstract

This Roundup discusses the literature on the effects of uncertainty on economic activity. Uncertainty will be generally referred to as the agents’ inability to form clear expectations about the future path of relevant economic variables. After motivating the analysis from a policy perspective, the Roundup outlines the key channels through which uncertainty exerts an impact on the economy. It then discusses in an intuitive manner the challenges in empirically estimating such effect, and the recent developments in the literature.

Suggested Citation

  • Michele Piffer, 2016. "Economic Effects of Uncertainty," DIW Roundup: Politik im Fokus 92, DIW Berlin, German Institute for Economic Research.
    • Handle: RePEc:diw:diwrup:92en
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    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.530123.de/DIW_Roundup_92_en.pdf
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    Cited by:

    1. Rivolta, Giulia & Trecroci, Carmine, 2020. "Measuring the effects of U.S. uncertainty and monetary conditions on EMEs' macroeconomic dynamics," MPRA Paper 99403, University Library of Munich, Germany.

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