We address the problem of aggregating demand across a group of consumers, who are identical in terms of wealth and face identical price vectors, but vary in their chosen consumption bundles. We show that, when a stochastic demand function is constructed to aggregate a number of deterministic demand functions, satisfaction of the weak axiom of stochastic revealed preference by this stochastic de...

Tommissen, and, most particularly, Paul Samuelson, for valuable comments on the earlier draft; they are, of course, not be held responsible for any defects that remain.

T he experimental approach has been a cornerstone of the scientifi c method for centuries. In one classic 1882 example, Louis Pasteur designated half of a group of 50 sheep as controls and vaccinated the other half. All animals then received a lethal dose of anthrax. Two days after inoculation, every one of the 25 control sheep were dead whereas the 25 vaccinated sheep were alive and well! Howe...

This paper develops an overlapping generations model with stochastic production and incomplete markets to assess whether the introduction of an unfunded social security system can lead to a Pareto improvement, even if the initial equilibrium is neither production-ine±cient in the spirit of Diamond (1965) nor dynamically ine±cient in the spirit of Samuelson (1957). When returns to capital and wa...