Alvaro Aguirre
  • Home
In this paper we propose an alternative to the widely used calibration strategy to link aggregate and idiosyncratic risk in heterogeneous agents' models. We illustrate the advantages of our method revisiting the welfare costs of business cycles in developed countries and in emerging economies.
Justice is the first virtue of social institutions, as truth is of systems of thought. A theory however elegant and economical must be rejected or revised if it is untrue; likewise laws and institutions no matter how efficient and well-arranged must be reformed or abolished if they are unjust. Each person possesses an inviolability founded on justice that even the welfare of society as a whole cannot override. For this reason justice denies that the loss of freedom for some is made right by a greater good shared by others.
John Rawls.
✕