The Pareto principle of optimal inequality
AbstractThe Pareto principle is often viewed as a mild requirement compatible with a variety of value judgements. In particular, it is generally thought that it can accommodate different degress of inequality aversion. We show that this is generally not true in time consistent intertemporal models where some uncertainty prevails.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2009009.
Date of creation: 01 Feb 2009
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inequality aversion; Pareto principle; uncertainty; time consistency;
Other versions of this item:
- D6 - Microeconomics - - Welfare Economics
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- D9 - Microeconomics - - Intertemporal Choice
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