A Literature Review of Investment Decision and Asset Pricing under Uncertainty
With increasing global geopolitical and economic uncertainty,the impact of uncertainty on economic activity and financial markets has attracted significant attention.This paper systematically reviews the literature on investment decisions and asset pricing under uncertainty.Although Frank Knight emphasized over a century ago that risk and uncertainty should be treated in fundamentally different ways,the difficulty of measuring uncertainty has led empirical studies to primarily focus on risks,rather than uncertainty,despite substantial theoretical advancements in this area.With the advent of high-frequency data and improved computational power,research on measuring uncertainty has made groundbreaking progress.This paper compares various methods for measuring uncertainty using actual data from economic and financial markets,analyzing the differences and applicability of these methods.This comparison helps scholars select appropriate measurement approaches to study the impact of uncertainty on economic activity and financial markets,as well as the efficiency of financial markets.
万方数据
维普
