Hepburn, Cameron; Hakon Sælen; Atkinson, Giles - Department of Economics, Oxford University - 2008
In the workhorse model of welfare economics, the elasticity of marginal utility, often denoted as η, serves simultaneously to represent aversion to risk, aversion to spatial inequality, and preferences for intertemporal substitution. While Kreps-Porteus-Selden and Epstein-Zin preferences...