Equivalence of utilitarian maximal and weakly maximal programs
For a class of aggregative optimal growth models, which allow for a non-convex and non-differentiable production technology, this paper examines whether the set of utilitarian maximal programs coincides with the set of weakly maximal programs. It identifies a condition, called the Phelps-Koopmans condition, under which the equivalence result holds. An example is provided to demonstrate that the equivalence result is invalid when the Phelps-Koopmans condition does not hold.
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- 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.
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