Llavador, Humberto; Roemer, John E.; Silvestre, Joaquim - Cowles Foundation for Research in Economics, Yale University - 2009
Suppose that there exists a positive (exogenous) probability that at each date of a possibly infinite future, the human species will disappear. We postulate an Ethical Observer (EO) who must solve an intertemporal welfare maximization problem under this kind of uncertainty, with preferences that...