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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
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    5. Kitti, Mitri, 2018. "Sustainable social choice under risk," Mathematical Social Sciences, Elsevier, vol. 94(C), pages 19-31.

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    More about this item

    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;
    All these keywords.

    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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