Infinite-Horizon Choice Functions
AbstractWe analyze infinite-horizon choice functions within the setting of a simple linear technology. Time consistency and efficiency 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Universite de Montreal, Departement de sciences economiques in its series Cahiers de recherche with number 2006-08.
Length: 21 pages
Date of creation: 2006
Date of revision:
Contact details of provider:
Postal: CP 6128, Succ. Centre-Ville, Montréal, Québec, H3C 3J7
Phone: (514) 343-6540
Fax: (514) 343-5831
Web page: http://www.sceco.umontreal.ca
More information through EDIRC
Intergenerational resource allocation; infinite-horizon choice;
Other versions of this item:
- ASHEIM, Geir B. & BOSSERT, Walter & SPRUMONT, Yves & SUZUMURA, Kotaro, 2006. "Infinite-Horizon Choice Functions," Cahiers de recherche 05-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Asheim, Geir B. & Bossert, Walter & Sprumont, Yves & Suzumura, Kotaro, 2008. "Infinite-horizon choice functions," PIE/CIS Discussion Paper 379, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Asheim, Geir B. & Bossert, Walter & Sprumont, Yves & Suzumura, Kotaro, 2006. "Infinite-horizon choice functions," Memorandum 17/2006, Oslo University, Department of Economics.
- D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-12-09 (All new papers)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- BOSSERT, Walter & SPRUMONT, Yves & SUZUMURA, Kotaro, 2002.
Cahiers de recherche
2002-12, Universite de Montreal, Departement de sciences economiques.
- BOSSERT, Walter & SUZUMURA, Kotaro, 2006.
"A Characterization of Consistent Collective Choice Rules,"
Cahiers de recherche
2006-12, Universite de Montreal, Departement de sciences economiques.
- Bossert, Walter & Suzumura, Kotaro, 2008. "A characterization of consistent collective choice rules," Journal of Economic Theory, Elsevier, vol. 138(1), pages 311-320, January.
- BOSSERT, Walter & SUZUMURA, Kotaro, 2006. "A Characterization of Consistent Collective Choice Rules," Cahiers de recherche 09-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Asheim, Geir B. & Buchholz, Wolfgang & Tungodden, Bertil, 2001.
Journal of Environmental Economics and Management,
Elsevier, vol. 41(3), pages 252-268, May.
- Kaushik Basu & Tapan Mitra, 2003.
"Aggregating Infinite Utility Streams with InterGenerational Equity: The Impossibility of Being Paretian,"
Econometric Society, vol. 71(5), pages 1557-1563, 09.
- Basu, Kaushik & Mitra, Tapan, 2003. "Aggregating Infinite Utility Streams with Inter-generational Equity: The Impossibility of Being Paretian," Working Papers 03-03, Cornell University, Center for Analytic Economics.
- William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER).
- Tjalling C. Koopmans, 1959. "Stationary Ordinal Utility and Impatience," Cowles Foundation Discussion Papers 81, Cowles Foundation for Research in Economics, Yale University.
- Basu, Kaushik & Mitra, Tapan, 2007.
"Utilitarianism for infinite utility streams: A new welfare criterion and its axiomatic characterization,"
Journal of Economic Theory,
Elsevier, vol. 133(1), pages 350-373, March.
- Basu, Kaushik & Mitra, Tapan, 2003. "Utilitarianism for Infinite Utility Streams: A New Welfare Criterion and Its Axiomatic Characterization," Working Papers 03-05, Cornell University, Center for Analytic Economics.
- Cass, D & Yaari, M E, 1971. "Present Values Playing the Role of Efficiency Prices in the One-Good Growth Model," Review of Economic Studies, Wiley Blackwell, vol. 38(115), pages 331-39, July.
- Asheim, G.B., 1989.
"Unjust Intergenerational Allocations,"
09-89, Norwegian School of Economics and Business Administration-.
- Geir Asheim & Bertil Tungodden, 2004. "Resolving distributional conflicts between generations," Economic Theory, Springer, vol. 24(1), pages 221-230, 07.
- Chiaki Hara & Tomoichi Shinotsuka & Kotaro Suzumura & Yongsheng Xu, 2008. "Continuity and egalitarianism in the evaluation of infinite utility streams," Social Choice and Welfare, Springer, vol. 31(2), pages 179-191, August.
- Bossert, Walter & Sprumont, Yves & Suzumura, Kotaro, 2007. "Ordering infinite utility streams," Journal of Economic Theory, Elsevier, vol. 135(1), pages 579-589, July.
- Asheim, Geir B. & Tungodden, Bertil, 2005. "A new equity condition for infinite utility streams and the possibility of being Paretian," Memorandum 08/2005, Oslo University, Department of Economics.
- Mitra, Tapan, 1979. "On the Value Maximizing Property of Infinite Horizon Efficient Programs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(3), pages 635-42, October.
- Alcantud, José Carlos R. & García-Sanz, María D., 2010.
"Evaluations of infinite utility streams: Pareto-efficient and egalitarian axiomatics,"
20133, University Library of Munich, Germany.
- José Carlos R. Alcantud & María D. García-Sanz, 2013. "Evaluations of Infinite Utility Streams: Pareto Efficient and Egalitarian Axiomatics," Metroeconomica, Wiley Blackwell, vol. 64(3), pages 432-447, 07.
- Ram Dubey & Tapan Mitra, 2013. "On the nature of Suppes–Sen maximal paths in an aggregative growth model," Social Choice and Welfare, Springer, vol. 40(1), pages 173-205, January.
- José Alcantud, 2009. "Conditional ordering extensions," Economic Theory, Springer, vol. 39(3), pages 495-503, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sharon BREWER).
If references are entirely missing, you can add them using this form.