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.
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 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)
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.:
- Juan Crespo & Carmelo Nuñez & Juan Rincón-Zapatero, 2009.
"On the impossibility of representing infinite utility streams,"
Springer, vol. 40(1), pages 47-56, July.
- Juan A. Crespo & Carmelo Núñez & Juan Pablo Rincón-Zapatero, 2007. "On the impossibility of representing infinite utility streams," Economics Working Papers we075530, Universidad Carlos III, Departamento de Economía.
- Toyotaka Sakai, 2006. "Equitable Intergenerational Preferences on Restricted Domains," Social Choice and Welfare, Springer, vol. 27(1), pages 41-54, August.
- 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.
- Hara, Chiaki & Shinotsuka, Tomoichi & Suzumura, Kotaro & Xu, Yongsheng, 2007. "On the Possibility of Continuous, Paretian and Egalitarian Evaluation of Infinite Utility Streams," Discussion Paper 322, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Alcantud, José Carlos R., 2010. "The compromise efficiency vs. egalitarianism among generations with an infinite horizon," MPRA Paper 22284, University Library of Munich, Germany.
- Basu, Kaushik & Mitra, Tapan, 2003.
"Aggregating Infinite Utility Streams with Inter-generational Equity: The Impossibility of Being Paretian,"
03-03, Cornell University, Center for Analytic Economics.
- Kaushik Basu & Tapan Mitra, 2003. "Aggregating Infinite Utility Streams with InterGenerational Equity: The Impossibility of Being Paretian," Econometrica, Econometric Society, vol. 71(5), pages 1557-1563, 09.
- Banerjee, Kuntal, 2006. "On the equity-efficiency trade off in aggregating infinite utility streams," Economics Letters, Elsevier, vol. 93(1), pages 63-67, October.
- Bossert, Walter & Sprumont, Yves & Suzumura, Kotaro, 2007. "Ordering infinite utility streams," Journal of Economic Theory, Elsevier, vol. 135(1), pages 579-589, July.
- Ram Sewak Dubey & Tapan Mitra, 2011. "On equitable social welfare functions satisfying the Weak Pareto Axiom: A complete characterization," International Journal of Economic Theory, The International Society for Economic Theory, vol. 7(3), pages 231-250, 09.
- Sakamoto, Norihito, 2011. "Impossibilities of Paretian Social Welfare Functions for Infinite Utility Streams with Distributive Equity," Discussion Papers 2011-09, Graduate School of Economics, Hitotsubashi University.
- Michele Lombardi & Roberto Veneziani, 2009.
"Liberal Egalitarianism and the Harm Principle,"
Global COE Hi-Stat Discussion Paper Series
gd09-078, Institute of Economic Research, Hitotsubashi University.
- Michele Lombardi & Roberto Veneziani, 2009. "Liberal Egalitarianism and the Harm Principle," Working Papers 649, Queen Mary, University of London, School of Economics and Finance.
- Lombardi, Michele & Miyagishima, Kaname & Veneziani, Roberto, 2013. "Liberal Egalitarianism and the Harm Principle," MPRA Paper 48458, University Library of Munich, Germany.
- Michele Lombardi & Kahame Miyagishima & Roberto Veneziani, 2013. "Liberal Egalitarianism and the Harm Principle," UMASS Amherst Economics Working Papers 2013-07, University of Massachusetts Amherst, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.