This paper proves that Lindahl has confused cost with benefit. He viewed public good as benefit and people will fight to take a larger share of the good. This paper proves that his model could not accommodate the public good, but the cost of the good. When a person has to take up the burden of...

Even recalculating the consumption paths over a limited number of investment scenarios, using a slider (as for slide 10), is tricky. The user wants to see the results of a small increments, which involve iteratively solving for consumption that exhausts the non-bequest assets. It is proposed to...

The mean-variance utility postulates that random variables with the same mean and variance should be equally desirable. This paper presents and discusses necessary and sufficient preference-based axioms for the existence of mean-variance utility in which any condition on variances but...

We develop a theory of “risky utilities”, i.e. private firms that manage an infrastructure for public service, and that may be tempted to engage in excessively risky activities, such as reducing maintenance expenditures (at the risk of provoking a break-down of the system) or in speculation...