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Indicators of robustness of a policy rule for a given model under model uncertainty are defined. These indicators can be ex ante (calculated from the transition matrix) or ex post (estimated by… (More)
Abstract The paper addresses the problem of designing cooperative policy rules for the G3 countries to cope with two forms of uncertainty. Exogenous uncertainty arises from shocks to oil prices and… (More)
Abstract Economic studies aiming at assessing the impact on the economy of the various policies that could be implemented to reduce carbon emissions have a common feature. The base-case scenario, or… (More)
This paper examines how considerations of model uncertainty can affect policy design. Without such considerations one may expect that choice of policy control rules for a macroeconomic model would… (More)