This paper develops a new approach to make welfare assessments based on the notion of Dynamic Stochastic Generalized Social Marginal Welfare Weights (DS-weights). For a large classof dynamic stochastic economies with heterogeneous individuals, we show that the aggregatewelfare assessment of a...

This paper studies the social value of closing price differentials in financial markets. We show that arbitrage gaps (price differentials between markets) exactly correspond to the marginal social value of executing an arbitrage trade. We further show that arbitrage gaps and measures of price...