Mario, Tirelli; Sergio, Turner - In: The B.E. Journal of Theoretical Economics 10 (2010) 1, pp. 1-33
Fixing a risky intertemporal, interagent consumption profile, its total cost is the total willingness to pay for smoothing everyone's consumption. It decomposes into a micro cost that captures the inefficiency in the cross-sectional distribution of total consumption, risky as it is, and a macro...