Decisions of investing in sovereign assets involve both risk and ambiguity. Ambiguity arises from unknown elements … characterizing the value of a generic sovereign. In presence of ambiguity, ambiguity-averse investors are prone to pay for obtaining … summary information such as ratings which reduces ambiguity. Ambiguity-neutral and ambiguity-averse investors, then, make …

provision are analyzed for illiquid assets with ambiguous returns. In the context of the model, ambiguity | i.e. incalculable … risk | leads to dynamically inconsistent investor behaviour. If the financial sector fails to recognize the presence of … ambiguity, unanticipated fundamental crises may occur, which are incorrectly blamed on investors 'loosing their nerves' and …

general equilibrium models that allow a distinction between ambiguity and risk. …We study the market implications of ambiguity in common models. We show that generic determinacy is a robust feature in …

We study the impact of ambiguity on two alternative institutions of financial intermediation in an economy where … consumers face uncertain liquidity needs. The ambiguity the consumers experience is modeled by the degree of confidence in their … with high liquidity needs. With increasing ambiguity this preference will be reversed: the asset market is preferred, since …

ambiguity-averse, they bet against productivity abroad being high, thus lowering their holding of foreign equity relative to the … benchmark, no-ambiguity model. Thus, consumption correlations across countries fall significantly. Moreover, foreign real …

We study the impact of ambiguity on two alternative institutions of financial intermediation in an economy where … consumers face uncertain liquidity needs. The ambiguity the consumers experience is modeled by the degree of confidence in their … with high liquidity needs. With increasing ambiguity this preference will be reversed: the asset market is preferred, since …

We study the impact of ambiguity on two alternative institutions of nancial intermediationin an economy where consumers … liquidity needs. With increasing ambiguity this preference will be reversed:the asset market is preferred, since it avoids …

We study the impact of ambiguity on two alternative institutions of financial intermediation in an economy where … consumers face uncertain liquidity needs. The ambiguity the consumers experience is modeled by the degree of confidence in their … with high liquidity needs. With increasing ambiguity this preference will be reversed: the asset market is preferred, since …