THE PARETO PRINCIPLE OF OPTIMAL INEQUALITY* |
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| Authors: | Antoine Bommier Stéphane Zuber |
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| Institution: | 1. ETH Zurich, Switzerland;2. CORE, Université catholique de Louvain, Belgium and CERSES, Université Paris Descartes, and CNRS, France |
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| Abstract: | The Pareto principle is often viewed as a mild requirement compatible with a variety of value judgments. In particular, it is generally thought that it can accommodate different degrees of inequality aversion. We show that this is generally not true in time‐consistent intertemporal models where some uncertainty prevails. |
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