Expected utility of net present value is the practitioner's approach to incorporate risk aversion into the evaluation of a project's cash flows. The discount rate and the convergence with the risk-neutral beta-adjusted approach from finance have always been a question. To fill this gap, we adopt...

Unlike the traditional measure of welfare gains from risk-sharing, the new measure presented here does not depend on the horizon, and it is robust to alternative specifications of the consumption stochastic processes and preferences. This measure shows that if international risk-sharing...