degree of pessimism of the representative agent is the mean of the individual ones weighted by their index of absolute risk …

payers act according to some non-expected utility theory, and (2) Individual ethical norms and social stigma induce people … subjective probabilities of being penalised according to the rank dependent utility theory, and (2) Tax payers' beliefs about … utility theory. The model explains data 53% better than pure random choices and predicts hours worked in the regular economy …

. In the longer run, however, a trade-off between diversification and climate action emerges. We derive the optimal carbon … price, the equilibrium risk-free rate, and risk premia. Climate disasters, which are more likely to occur sooner as … temperature rises, significantly increase risk premia. …

In the expected-utility theory of the monetary value of a statistical life, the so-called dead-anyway effect discovered … risk increases with the initial level of risk. Their reasoning is based on differences in the marginal utility of wealth …: first, for a risk-averse individual without a bequest motive, marginal WTP for survival does increase with the level of risk …

first-order approximated solution built by perturbation methods accounts for risk. We show that risk matters economically in … a real business cycle (RBC) model with habit formation and capital adjustment costs and that neglecting risk leads to …

-form expressions of welfare loss from shocks and epistemological uncertainty identify the interaction of (intertemporal) risk attitude … is comparable to numeric models used in policy advising. Uncertainty surrounding climate change remains large. The closed …, distributional moments, and the climatic shadow values. Welfare gains from reducing uncertainty about temperature feedbacks are much …

"fat-tailed" risks of catastrophic outcomes (Weitzman, 2009b). Such risks are suggested to be an inevitable consequence of … scientific uncertainty about the effects of increased greenhouse gas concentrations on climate. Criticisms of this controversial …

choice deviate from what citizens want but that an increase in uncertainty about policy outcomes decreases this distortion. …The paper analyzes under what circumstances policymakers experiment with policies with uncertain outcomes, when they …

acquiring or processing information acquire less information. Finally, an exogenous increase in the perceived uncertainty of the …