Golosov, Mikhail; Jones, Larry E.; Tertilt, Michèle - In: Econometrica 75 (2007) 4, pp. 1039-1071
In this paper, we generalize the notion of Pareto efficiency to make it applicable to environments with endogenous populations. Two efficiency concepts are proposed: 𝒫-efficiency and 𝒜-efficiency. The two concepts differ in how they treat potential agents that are not born. We show that these...