Risk', trans. by Louise Sommer, Econometrica, 22 (1), January, 23-36 -- 2. Milton Friedman and L.J. Savage (1948), 'The … Utility Analysis of Choices Involving Risk', Journal of Political Economy, 56 (4), August, 279-304 -- 3. John W. Pratt (1964 …), 'Risk Aversion in the Small and in the Large', Econometrica, 32 (1-2), January-April, 122-36 -- 4. Michael Rothschild and …

facing uninsurable idiosyncratic labor income risk. The Ramsey government internalizes the general equilibrium feedback of … optimal aggregate saving rate is independent of income risk. The optimal time-invariant tax on capital is increasing in income … risk. Its sign depends on the extent of risk and on the Pareto weight of future generations. If the Ramsey tax rate that …

productivity and aggregate business cycle risk. We show analytically that the whole welfare benefit from joint insurance against … both risks is greater than the sum of benefits from insurance against the isolated risk components. One reason is the … convexity of the welfare gain in total risk. The other reason is a direct risk interaction which amplifies the utility losses …