An economy faces an unknown individual risk, such as the health effects of a recently discovered environmental hazard. Opinions may be widely different about the distribution of risks across the population. We study financial markets that suffice to reach efficient allocations in this situation....

An economy faces an unknown individual risk, such as the health effects of a recently discovered environmental hazard. Opinions may be widely different about the distribution of risks across the population. We study financial markets that suffice to reach efficient allocations in this situation....

Climate risks have always been amongst the most important faced by human societies. Today the concern has new elements: the global nature of possible changes and the fact that they are driven by human activity. The risks posed by climate change are therefore endogenous and so outside of the...