Aggregate risk and the Pareto principle

Nabil I. Al-Najjar and Luciano Pomatto

Journal of Economic Theory, 2020, vol. 189, issue C

Abstract: In the evaluation of public policies, a crucial distinction is between plans that involve purely idiosyncratic risk and those that generate correlated, or aggregate, risk. While natural, this distinction is not captured by standard utilitarian aggregators.

Keywords: Harsanyi's theorem; Aggregate risk; Preference aggregation (search for similar items in EconPapers)
JEL-codes: D71 D81 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:189:y:2020:i:c:s002205312030079x

DOI: 10.1016/j.jet.2020.105084

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