-contingent consumer's surplus and the state-contingent marginal utility of wealth and a second term representing risk aversion. This … consumer's surplus is determined by the covariance between preferences and consumer's surplus and risk aversion. The sign of …. We then apply this result to the allocation of risk in the context of both public and private goods. In Section 3, we …

the present value of the flow of social benefits minus costs. But the real world is one of considerable uncertainty … discount rates that should be used to compute present values. The implications of uncertainty are complicated by the fact that … horizons. Correctly incorporating uncertainty in policy design is therefore one of the more interesting and important research …