Methodological Foundations – Risk and Informational Uncertainty

A special interest in our research is the role of risk and how economic agents deal with imperfect information and uncertainty. For this, we conduct basic research and offer new, alternative methodological approaches with the goal of providing a simplified, explicit, and insightful representation of individual behaviour under uncertainty in structural models. Understanding individual expectation formation and behaviour when facing incomplete information uncertainty can be crucial to better understand macroeconomic developments and to develop a robust policy framework.

Michael P. Evers, Markus Kontny

Research contributions:

• Solving Nonlinear Expectations Models by Approximating the Stochastic Equilibrium System

 Michael P. Evers (2022)

• Vector Differential Calculus Using Bell Polynomials

Michael P. Evers, Markus Kontny (2022)

• Attention Allocation, Macroeconomic Expectations, and Consumption Behavior

Markus Kontny, Penghui Yin (2022)

• Policy Function Iteration using Approximate Equilibrium Systems

Michael P. Evers, Markus Kontny (2021)

• Finite state Markov-chain Approximations and Non-Linearities in Economic Models

Michael P. Evers, Markus Kontny (2021)