2014 Fiscal Year Final Research Report
Tail risk and intergenerational equity: the axiomatic approach
| Project/Area Number |
24530192
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Multi-year Fund |
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| Section | 一般 |
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| Research Field |
Economic theory
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| Research Institution | University of Tsukuba |
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Principal Investigator |
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| Project Period (FY) |
2012-04-01 – 2015-03-31
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| Keywords | 世代間衡平 / テール・リスク / 世代効用の無限流列 |
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| Outline of Final Research Achievements |
The conflict of interest between generations has been getting worse with progress of low birthrate and aging in Japan. An urgent problem in welfare economics is to provide intergenerational ethics that help resolve the intergenerational conflicts. In addition, tail risks are potential factors that could aggravate the intergenerational conflicts. Tail event is referred to as something that occurs with an extremely low probability but entails catastrophic damages when it happens. The Great East Japan Earthquake and climate change arising from global warming are typical examples of tail events. The question of intergenerational equity immediately arises when it comes to tail risk evaluation: the choice of discount rate for future utility is of vital importance for the evaluation. In this study, I consider the problem of the tail risk evaluations such as a climate change or the large-scale earthquake in a framework of welfare economics and social choice theory.
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| Free Research Field |
社会的選択
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