The impossibility of social evaluations of infinite streams with strict inequality aversion
AbstractWe are concerned with the problem of aggregating infinite utility streams and the possible adoption of consequentialist equity principles when using numerical evaluations of the streams. We find a virtually universal incompatibility between the Basu-Mitra approach (that advocates for social welfare functions and renounces continuity assumptions) and postulates that capture various forms of strict preference for a reduction in inequality like the Strong Equity Principle, the Pigou-Dalton Transfer principle, or Altruistic Equity.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 33716.
Date of creation: 25 Sep 2011
Date of revision:
Social welfare functions; Strong Equity Principle; Pigou-Dalton Transfer principle; Altruistic Equity; monotonicity;
Find related papers by JEL classification:
- 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
- D90 - Microeconomics - - Intertemporal Choice - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-09 (All new papers)
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Global COE Hi-Stat Discussion Paper Series
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