IDEAS home Printed from https://ideas.repec.org/a/eee/mateco/v70y2017icp51-65.html
   My bibliography  Save this article

Suppes–Sen maximality of cyclical consumption: The neoclassical growth model

Author

Listed:
  • Banerjee, Kuntal

Abstract

In this paper we demonstrate the existence of cyclical consumption that are maximal according to the Suppes–Sen grading principle for the Aggregative Growth Model. The paper demonstrates the optimality of cyclical consumption paths in the absence of discounting for the smooth neoclassical growth model. The process of this verification allows us to develop the theory of weakly maximal paths for a non-concave and discontinuous utility function extending previous results from Optimal Growth Theory.

Suggested Citation

  • Banerjee, Kuntal, 2017. "Suppes–Sen maximality of cyclical consumption: The neoclassical growth model," Journal of Mathematical Economics, Elsevier, vol. 70(C), pages 51-65.
    • Handle: RePEc:eee:mateco:v:70:y:2017:i:c:p:51-65
    DOI: 10.1016/j.jmateco.2017.01.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0304406817300344
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jmateco.2017.01.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cass, David, 1972. "On capital overaccumulation in the aggregative, neoclassical model of economic growth: A complete characterization," Journal of Economic Theory, Elsevier, vol. 4(2), pages 200-223, April.
    2. Asheim, Geir B. & Buchholz, Wolfgang & Tungodden, Bertil, 2001. "Justifying Sustainability," Journal of Environmental Economics and Management, Elsevier, vol. 41(3), pages 252-268, May.
    3. Geir B. Asheim & Wolfgang Buchholz, 2004. "A General Approach to Welfare Measurement through National Income Accounting," Scandinavian Journal of Economics, Wiley Blackwell, vol. 106(2), pages 361-384, June.
    4. David Gale, 1967. "On Optimal Development in a Multi-Sector Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(1), pages 1-18.
    5. 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, September.
    6. Rose-Anne Dana & Cuong Le Van, 2006. "Optimal growth without discounting," Post-Print halshs-00101355, HAL.
    7. W. A. Brock, 1970. "On Existence of Weakly Maximal Programmes in a Multi-Sector Economy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 37(2), pages 275-280.
    8. Rose-Anne Dana & Cuong Le Van, 2006. "Optimal Growth Without Discounting," Springer Books, in: Rose-Anne Dana & Cuong Le Van & Tapan Mitra & Kazuo Nishimura (ed.), Handbook on Optimal Growth 1, chapter 1, pages 1-17, Springer.
    9. repec:dau:papers:123456789/433 is not listed on IDEAS
    10. Rose-Anne Dana & Cuong Le Van, 2006. "Optimal growth without discounting," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00101355, HAL.
    11. Fleurbaey, Marc, 2015. "On sustainability and social welfare," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 34-53.
    12. Lauwers, Luc, 2010. "Ordering infinite utility streams comes at the cost of a non-Ramsey set," Journal of Mathematical Economics, Elsevier, vol. 46(1), pages 32-37, January.
    13. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808, Decembrie.
    14. Ram Dubey & Tapan Mitra, 2013. "On the nature of Suppes–Sen maximal paths in an aggregative growth model," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 173-205, January.
    15. Rose-Anne Dana & Cuong Le Van & Tapan Mitra & Kazuo Nishimura (ed.), 2006. "Handbook on Optimal Growth 1," Springer Books, Springer, number 978-3-540-32310-5, November.
    16. Hiroshi Atsumi, 1965. "Neoclassical Growth and the Efficient Program of Capital Accumulation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 32(2), pages 127-136.
    17. , R., 2007. "Can intergenerational equity be operationalized?," Theoretical Economics, Econometric Society, vol. 2(2), June.
    18. Dubey, Ram Sewak & Mitra, Tapan, 2010. "On the Nature of Suppes-Sen Choice Functions in an Aggregative Growth Model," Working Papers 10-06, Cornell University, Center for Analytic Economics.
    19. Svensson, Lars-Gunnar, 1980. "Equity among Generations," Econometrica, Econometric Society, vol. 48(5), pages 1251-1256, July.
    20. Roy Radner, 1961. "Prices and the Turnpike: III. Paths of Economic Growth that are Optimal with Regard only to Final States: A Turnpike Theorem," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 28(2), pages 98-104.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. O. S. Sukharev & E. N. Voronchikhina, 2020. "Structural growth policy in Russia: Resources, technology-intensity, risk, and industrialisation," Journal of New Economy, Ural State University of Economics, vol. 21(1), pages 29-52, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alvarez-Cuadrado, Francisco & Van Long, Ngo, 2009. "A mixed Bentham-Rawls criterion for intergenerational equity: Theory and implications," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 154-168, September.
    2. 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.
    3. Ram Dubey & Tapan Mitra, 2013. "On the nature of Suppes–Sen maximal paths in an aggregative growth model," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 40(1), pages 173-205, January.
    4. Takashi Kamihigashi, 2008. "On the principle of optimality for nonstationary deterministic dynamic programming," International Journal of Economic Theory, The International Society for Economic Theory, vol. 4(4), pages 519-525, December.
    5. Jonsson, Adam & Voorneveld, Mark, 2018. "The limit of discounted utilitarianism," Theoretical Economics, Econometric Society, vol. 13(1), January.
    6. Zuber, Stéphane & Asheim, Geir B., 2012. "Justifying social discounting: The rank-discounted utilitarian approach," Journal of Economic Theory, Elsevier, vol. 147(4), pages 1572-1601.
    7. Dubey, Ram Sewak & Mitra, Tapan, 2010. "On the Nature of Suppes-Sen Choice Functions in an Aggregative Growth Model," Working Papers 10-06, Cornell University, Center for Analytic Economics.
    8. Adam Jonsson & Mark Voorneveld, 2015. "Utilitarianism on infinite utility streams: summable differences and finite averages," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 3(1), pages 19-31, April.
    9. Kohei Kamaga, 2016. "Infinite-horizon social evaluation with variable population size," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 47(1), pages 207-232, June.
    10. Jonsson, Adam & Voorneveld, Mark, 2014. "Utilitarianism for infinite utility streams: summable differences and finite averages," SSE/EFI Working Paper Series in Economics and Finance 747, Stockholm School of Economics, revised 15 Apr 2014.
    11. Mitra, Tapan, 2004. "Intergenerational Equity and the Forest Management Problem," Working Papers 04-17, Cornell University, Center for Analytic Economics.
    12. Lee H. Endress & Sittidaj Pongkijvorasin & James Roumasset & Christopher Wada, 2013. "Intergenerational Equity with Individual Impatience in an OLG Model of Optimal and Sustainable Growth," Working Papers 2013-9, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    13. Mariotti, Marco & Veneziani, Roberto, 2012. "Allocating chances of success in finite and infinite societies: The utilitarian criterion," Journal of Mathematical Economics, Elsevier, vol. 48(4), pages 226-236.
    14. Asheim, Geir B. & d'Aspremont, Claude & Banerjee, Kuntal, 2010. "Generalized time-invariant overtaking," Journal of Mathematical Economics, Elsevier, vol. 46(4), pages 519-533, July.
    15. Endress, Lee H. & Pongkijvorasin, Sittidaj & Roumasset, James & Wada, Christopher A., 2014. "Intergenerational equity with individual impatience in a model of optimal and sustainable growth," Resource and Energy Economics, Elsevier, vol. 36(2), pages 620-635.
    16. Fleurbaey, Marc, 2015. "On sustainability and social welfare," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 34-53.
    17. Kohei Kamaga & Takashi Kojima, 2010. "On the leximin and utilitarian overtaking criteria with extended anonymity," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 35(3), pages 377-392, September.
    18. Fleurbaey, Marc & Michel, Philippe, 2003. "Intertemporal equity and the extension of the Ramsey criterion," Journal of Mathematical Economics, Elsevier, vol. 39(7), pages 777-802, September.
    19. Banerjee, Kuntal & Mitra, Tapan, 2010. "Equivalence of utilitarian maximal and weakly maximal programs," Journal of Mathematical Economics, Elsevier, vol. 46(3), pages 279-292, May.
    20. Truman Bewley, 2010. "An Integration of Equilibrium Theory and Turnpike Theory," Levine's Working Paper Archive 1381, David K. Levine.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:70:y:2017:i:c:p:51-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jmateco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.