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Jan 29·edited Jan 29

So, on the model, for a given total amount of consumption, you can maximize utility either by eliminating inequality or by eliminating risk-aversion. What's a good word for the latter? Not "utility-monsters", but like, "utility-neutrals": you should be indifferent re how to distribute consumption over them.

(I should clarify: I didn't check the math, just looked up the definitions.)

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I was thinking you have a choice between raising the median (e.g. via growth) or lowering Gini coefficient while keeping the risk aversion parameter the same. And in this model everyone has the same utility function.

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