# A never-decisive and anonymous criterion for optimal growth models

## Author

Listed:
• Alain Ayong Le Kama

()

• Thai Ha-Huy

()

• Cuong Le Van

()

• Katheline Schubert

()

## Abstract

We address in this paper the question of the existence of a Social Welfare Function that would be sustainable and would allow us to obtain solutions to optimal growth models. We define sustainability by two new axioms called Never-decisiveness of the present and Never-decisiveness of the future. We first show that a SWF which has Never-decisiveness properties cannot be defined on a ball of $$l_{\infty }^{+}$$ l ∞ + . We must (i) restrict to the set of utility streams for which the value of the SWF is finite and (ii) introduce additional assumptions in order to obtain the Never-decisiveness properties. Our main result in this paper is therefore to show that the undiscounted utilitarian criterion is an anonymous and never-decisive criterion for optimal growth models. We consider the set of utilities of consumptions which are generated by a specific technology, namely a technology with decreasing returns for high levels of capital, and restrict ourselves to good programs, i.e., any program for which intertemporal utility is well defined. Copyright Springer-Verlag Berlin Heidelberg 2014

## Suggested Citation

• Alain Ayong Le Kama & Thai Ha-Huy & Cuong Le Van & Katheline Schubert, 2014. "A never-decisive and anonymous criterion for optimal growth models," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(2), pages 281-306, February.
• Handle: RePEc:spr:joecth:v:55:y:2014:i:2:p:281-306
DOI: 10.1007/s00199-013-0759-x
as

File URL: http://hdl.handle.net/10.1007/s00199-013-0759-x

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## References listed on IDEAS

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Cited by:

1. repec:ags:frraes:276764 is not listed on IDEAS
2. Kirill Borissov & Mikhail Pakhnin, 2018. "Economic growth and property rights on natural resources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 423-482, March.
3. repec:wsi:ccexxx:v:09:y:2018:i:02:n:s2010007818500021 is not listed on IDEAS
4. Geir B. Asheim & Ivar Ekeland, 2016. "Resource conservation across generations in a Ramsey–Chichilnisky model," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 61(4), pages 611-639, April.
5. repec:eee:matsoc:v:94:y:2018:i:c:p:19-31 is not listed on IDEAS
6. Bontems, Philippe & Martinet, Vincent & Rotillon, Gilles & Withagen, Cees, 2015. "Interactions between agricultural economics and environmental and resource economics in European research: Insights from the theory of non-renewable resources," Revue d'Etudes en Agriculture et Environnement, Editions NecPlus, vol. 96(01), pages 167-185, March.
7. W. J. Wouter Botzen & Jeroen C. J. M. Van Den Bergh & Graciela Chichilnisky, 2018. "Climate Policy Without Intertemporal Dictatorship: Chichilnisky Criterion Versus Classical Utilitarianism In Dice," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 1-17, May.

### Keywords

Anonymity; Intergenerational equity; Natural resources; Never-decisiveness of the future; Never-decisiveness of the present; No-dictatorship of the future ; No-dictatorship of the present; Optimal growth models; Social welfare function; Sustainability; D60; D70; D90; Q0;

### JEL classification:

• D60 - Microeconomics - - Welfare Economics - - - General
• D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
• D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
• Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General

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