The recent "Great Recession" has thrown macroeconomic research into a state of disarray and has clearly shown the need to go beyond traditional business cycle explanations. However, many of the recently proposed business ...

This thesis concerns the enforcement of contracts in the presence of uncertainty. Sometimes uncertainty is exogenously given and the agents cannot influence its existence. Frequently, however, there is strategic uncertainty ...

Chapter 1 proposes simple and robust diagnostic tests for spatial dependence, specifically for spatial error autocorrelation and spatial lag dependence. The idea of our tests is to reformulate the testing problem such that ...

The benchmark model of economics, expected utility theory, assumes that individuals manage uncertainty by forming beliefs about all relevant events and that these beliefs satisfy the probability axioms. There is ample scope ...

We consider tangible economic problems for agents assessing risk by virtue of dynamic coherent and convex risk measures or, equivalently, utility in terms of dynamic multiple priors and dynamic variational preferences in ...