In a continuous-time economy with complete markets, we study how the heterogeneity in the individual consumers' risk tolerance and impatience affects the representative consumer's risk tolerance and impatience. We derive some formulas, which indicate that the representative consumer's impatience...

We study the representative consumer's risk attitude and efficient risk-sharing rules in a singleperiod, single-good economy in which consumers have homogeneous probabilistic beliefs but heterogeneous risk attitudes. We prove that if all consumers have convex absolute risk tolerance, so must the...

There exists a utilitarian tradition la Sidgwick of treating equal generations equally in the form of anonymity. Diamond showed that no social evaluation ordering over infinite utility streams satisfying the Pareto principle, Sidgwick's equity principle, and the axiom of continuity exists. We...

The purpose of this paper is to establish the equivalence between the anonymous core and the set of the Walrasian equilibrium allocations in an atomless exchange economy. The anonymous (or, synonymously, incentive-compatible or envy-free) core is the set of those consumption allocations that are...

In a model of a two-period exchange economy under uncertainty, we find an upper bound for the equilibrium risk-free interest rate when the expected aggregate endowment in the second period is no greater than the first-period aggregate endowment. We also find a lower bound when the agents'...