Uncertainty within economic models. With a foreword by Eric S. Maskin (Q2868743)

The present book contains ten fundamental articles of the authors on how to proceed when agents and econometricians are uncertain about the correct model.NEWLINENEWLINEThe structure of the book is as follows: 11 chapters, 4 appendices, bibliography, author index and subject index.NEWLINENEWLINEThe introductory Chapter 1 lays out a dealing with misspecification in general and what the individual papers do in particular. Chapter 2 deals with discounted linear exponential quadratic Gaussian control. Chapter 3 considers robust permanent income and pricing. Chapter 4 investigates a quartet of semigroups for model specification, robustness, prices of risk and model detection. Robust control and model uncertainty is considered in Chapter 5, while robust control and model misspecification is studied in Chapter 6. In Chapter 7, the authors consider the question `Doubts or variability?' and look for possible answers. Recursive robust estimation and control without commitment are studied in Chapter 8. Chapter 9 contains an investigation of fragile beliefs and the price of uncertainty. Chapter 10 looks at the beliefs, doubts and learning while valuing macroeconomic risk. Three types of ambiguity are considered in Chapter 11.NEWLINENEWLINEThis book will be useful for those who deal with econometrics, macroeconomics, and economic models and study uncertainty.