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The Pareto principle of optimal inequality

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  • BOMMIER, Antoine
  • ZUBER, Stéphane

    ()
    (Université catholique de Louvain (UCL). Center for Operations Research and Econometrics (CORE))

Abstract

The 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 Info

Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2009009.

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Date of creation: 01 Feb 2009
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Handle: RePEc:cor:louvco:2009009

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Keywords: inequality aversion; Pareto principle; uncertainty; time consistency;

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