Bloise, Gaetano; Reichlin, Pietro - Dipartimento di Economia, Università degli Studi di Roma 3 - 2008
In this paper, we consider economies with (possibly endogenous) solvency constraints under uncertainty. Constrained ine±ciency corresponds to a feasible redistribution yielding a welfare improvement beginning from ev- ery contingency reached by the economy. A sort of Cass Criterion (Cass [10])...