Efficiency and prices in economies of overlapping generations
AbstractIn a general economy of overlapping generations, I introduce a notion of uniform ine±ciency, corresponding to the occurrence of a Pareto improvement with a small uniform destruction of resources (Debreu ). I provide necessary and su±cient conditions for uniform ine±ciency in terms of competitive equilibrium prices. Minimal assumptions are needed for such a complete characterization; moreover, proofs reduce to simple and short direct arguments. Finally, I verify that uniform ine±ciency is preserved under perturbations of the endowments, a property that has not been established for the canonical notion of ine±ciency. Remarkably, an allocation is unifo
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Date of creation: Dec 2007
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Overlapping generations; e±ciency; competitive prices; Cass Criterion; social security;
Other versions of this item:
- Bloise, Gaetano, 2008. "Efficiency and prices in economies of overlapping generations," Journal of Economic Theory, Elsevier, vol. 141(1), pages 200-224, July.
- D52 - Microeconomics - - General Equilibrium and Disequilibrium - - - Incomplete Markets
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-24 (All new papers)
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