Note that, when η = 0, ci is simply the expected income of i. We then calculate the inequality-neutral certainty-equivalent income loss. To do this, we find the equalpercentage loss that, if forfeited by all agents with certainty, yields the same welfare as the actual crosssectional distribution of certainty equivalent losses ci . Denoting the inequality-neutral certainty-equivalent income loss...

The Merton problem is the well-known stochastic control of choosing consumption over time, as well an investment mix, to maximize expected constant relative risk aversion (CRRA) utility consumption. formulated and provided analytical solution in 1970; since then a number extensions original formulation have been solved. In this note we identify certainty equivalent problem, i.e., deterministic ...

Legal certainty is a fundamental principle which contributes in the rule of law. According to some authors this principle is an “imperative necessity for the European Union”. Indeed the European case-law recognized the principle of legal certainty. One the one hand, through the European Court of Justice in 1962 in the Bosch judgment. As well, the principle of legitimate expectations – which is ...

This paper explores consumers' commitment to and conviction about their beliefs in the form of attitude certainty. Based on a review of past research, we present a new framework for understanding attitude certainty and how consumers' attitude certainty is shaped by their resisting or yielding to persuasive messages, or even by their reflections on the evidence supporting their attitudes. We pro...