Welfare implications of mitigating investment uncertainty

Abstract This study explores the welfare implications of mitigating investment uncertainty in context Easley and O’Hara (Rev Financ Stud 22:1817–1843, 2009) While one may expect gains by encouraging participation financial markets ambiguity-averse investors, we formally show that it hurts other investors thus is not Pareto-improving without appropriate income transfers. We also examine effects redistribution among heterogeneous government spending on investor education.