Infinite-horizon choice functions

We analyze infinite-horizon choice functions within the setting of a simple technology. Efficiency and time consistency are characterized by stationary consumption and inheritance functions, as well as a transversality condition. In addition, we consider the equity axioms Suppes-Sen, Pigou-Dalton, and resource monotonicity. We show that Suppes-Sen and Pigou-Dalton imply that the consumption and inheritance functions are monotone with respect to time - thus justifying sustainability - while resource monotonicity implies that the consumption and inheritance functions are monotone with respect to the resource. Examples illustrate the characterization results.

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Year of publication:	2008-06
Authors:	Asheim, Geir B. ; Bossert, Walter ; Sprumont, Yves ; Suzumura, Kotaro
Institutions:	Center for Intergenerational Studies, Institute of Economic Research
Subject:	Intergenerational resource allocation \| infinite-horizon choice

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Extent:	application/pdf
Series:	PIE/CIS Discussion Paper.
Type of publication:	Book / Working Paper
Notes:	This version: January 23, 2008, An earlier version of the paper was presented at Seoul National University, Victoria University of Wellington, the University of Auckland, the 2005 polarization and conflict conference in Milan, the 2006 workshop on intergenerational resource allocation in Montr饌l and the University of New South Wales. Number 379 23 pages long
Classification:	D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; D71 - Social Choice; Clubs; Committees; Associations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005018194