Because of the uncertainty about how to model the growth process of our economy, there is still much confusion about which discount rates should be used to evaluate actions having long-lasting impacts, as in the contexts of climate change, social security reforms or large public infrastructures for example. In this paper, we take this critique seriously by assuming that the random walk of econo...

Uncertainty theory is a branch of mathematics for modeling human uncertainty. This paper will answer the following questions: What is uncertainty? In what situations does uncertainty arise? What is the difference between uncertain variable and uncertain set? This paper will also discuss the relations and differences among uncertainty, fuzziness and probability. c ⃝2012 World Academic Press, UK....

Reinterpreting most of the market price of risk as a price of model uncertainty eradicates a link between asset prices and measures of the welfare costs of aggregate fluctuations that was proposed by Hansen et al. (1999), Tallarini (2000), and Alvarez and Jermann (2004). Prices of model uncertainty contain information about the benefits of removing model uncertainty, not the consumption fluctua...

In this paper we develop a continuous-time general equilibrium model in a representative exchange economy with incomplete information. We show, in a multiple assets setting, that state uncertainty risk is priced and commands additional (state-dependent) premium. It is affected by both the investor’s estimate of the state of the economy, as well as the uncertainty about her estimation. Moreover,...

The paper's primary finding reveals that there are three factors related to the level of Bolivian economic uncertainty. These were interpreted as: i) uncertainty expectations; ii) monetary and exchange rate policy; iii) political social contribution each factor was found account for approximately one-third total uncertainty; however, due incidence searches, in policy showed greater contemporane...

We examine factors influencing the decision to acquire additional equity in partner firms in research-intensive industries. This decision involves choosing between flexibility and commitment. Option theory motivates hypotheses regarding the effects of uncertainty, valuation of developing technologies, and the threat of preemptive rivalry. Our main hypothesis is that the resolution of uncertaint...

For treating cancer, tumor growth models have shown to be a valuable resource, whether they are used develop therapeutic methods paired with process control or simulate and evaluate treatment processes. In addition, fuzzy mathematical model is tool for monitoring the influences of various elements creating behavioral assessments. It has been designed decrease ambiguity parameters obtain reliabl...