The utilitarian aggregation rule requires social utility and beliefs to be a convex combination of individual utilities beliefs, respectively. Since, in the case belief heterogeneity, standard Pareto condition is incompatible with such separate aggregation, new condition, called belief-proof proposed alleviate occurrences spurious agreement by restricting unanimity that can considered reasonabl...

The Journal of Economic Literature codes classification system (JEL) published by the American Association (AEA) is de facto standard for research literature in economics. JEL used to classify articles, dissertations, books, book reviews, and working papers EconLit, a database maintained AEA. Over time, it has evolved extended with over 850 subclasses. This paper reviews history development sys...

Concern for individual consumption relative to per capita consumption can induce a fear of falling behind which increases precautionary savings. This fear intensifies as societal income growth increases, allowing for a positive effect of growth on savings rates. JEL classifications: E21, D11, D91.

In 1955, Herbert Simon introduced the notion of satisficing: an agent satisfices by searching for alternative that meets aspiration level but does not optimize. We survey more than 60 years advances in understanding satisficing economics, psychology, and management, identifying two research traditions address classes situations: under risk, is typically inferior to optimization strategies model...

This paper computes optimal top marginal tax rates in Bewley-Huggett-Aiyagari–type economies that include entrepreneurs. Consistent with the data, entrepreneurs are overrepresented at of income distribution and thus disproportionately affected by an increase rate. The rate maximizes welfare is 60 percent. While average gains positive similar across occupations along transition, they larger for ...

We study fairness in economies where humans consume one private good and public representing the welfare of other species. show that a social evaluator cannot be egalitarian with respect to while always respecting humans’ unanimous preferences. One solution is preferences only when doing so does not lead decrease Social satisfying these properties reveal surprising connections between concerns ...

We study a dynamic equilibrium search model where sellers differ in their urgency to liquidate an asset. Buyers strategically make price offers without knowing given seller’s urgency. liquidity and dynamics on the transition path after unexpected shock. Generically, includes phase all buyers offer same price, causing market collapse; however, dispersion resumes finite time, leading recovery bot...