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In this research work, presented by Paolo Giovanni Piacquadio from University of Oslo, the chosen family of criteria avoid some serious drawbacks of expected utilitarianism, such as the inability to disentangle risk aversion and inequality aversion, the lack of ethical considerations for learning, and Weitzman’s “dismal theorem”. Risk and learning are modeled as a decision tree: in each period, the outcome assigned to the current one-period living generation is to be traded off against uncertain benefits of future generations; as time passes, the planner observes the realized shocks and becomes more informed about the true state of the world.

Fondazione Eni Enrico Mattei