Risk and uncertainty

Pablo Guerron

Business Review, 2012, issue Q1, 9-18

Abstract: Many news reports and economic experts talk about uncertainty. But what does the word mean in an economic context? Specifically, what do economists have in mind when they talk about it? In this article, Pablo Guerron-Quintana discusses the concepts of risk and uncertainty, what the difference is between the two terms, and why their presence in the economy may have widespread effects. He also talks about measuring risk at the aggregate level ? that is, risk that affects all participants in the economy ? and he reviews the various types of risk measures that economists have proposed.

Keywords: Risk; Uncertainty (search for similar items in EconPapers)
Date: 2012
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