Pareto optimality of the golden rule equilibrium in an overlapping generations model with production and transfers
The main result is that the golden rule equilibrium (GRE) is Pareto optimal (in the classical sense) in an overlapping generations (OG) model with constant-returns-to-scale production, transfers, arbitrary life-time productivity and CES instantaneous felicity. In addition, we extend Cass and Yaari's  equivalence between efficiency (aggregate consumption dominance) and the present value dominance (with evaluation made using a candidate equilibrium price path).
|Date of creation:||14 Sep 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Voie du Roman Pays 34, 1348 Louvain-la-Neuve (Belgium)|
Fax: +32 10474304
Web page: http://www.uclouvain.be/core
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fleurbaey,Marc & Maniquet,François, 2011.
"A Theory of Fairness and Social Welfare,"
Cambridge University Press, number 9780521715348, September.
- MERTENS, Jean-François & RUBINCHIK, Anna, 2012.
"Equilibria in an overlapping generations model with transfer policies and exogenous growth,"
CORE Discussion Papers
2012032, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Jean-François Mertens & Anna Rubinchik, 2013. "Equilibria in an overlapping generations model with transfer policies and exogenous growth," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(3), pages 537-595, November.
- Mertens, Jean-Francois & Rubinchik, Anna, . "Equilibria in an overlapping generations model with transfer policies and exogenous growth," Working Papers WP2012/5, University of Haifa, Department of Economics.
- Duc, Francois & Ghiglino, Christian, 1998. "Optimality of Barter steady states," Journal of Economic Dynamics and Control, Elsevier, vol. 22(7), pages 1053-1067, May.
- Mendolicchio Concetta & Paolini Dimitri & Pietra Tito, 2012.
"Asymmetric Information And Overeducation,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 12(1), pages 1-29, October.
- MENDOLICCHIO, Concetta & PAOLINI, Dimitri & PIETRA, Tito, 2012. "Asymmetric information and overeducation," CORE Discussion Papers 2012021, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Mendolicchio, Concetta & Paolini, Dimitri & Pietra, Tito, 2012. "Asymmetric information and overeducation," IAB Discussion Paper 201214, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
- Duranton, Gilles & Martin, Philippe & Mayer, Thierry & Mayneris, Florian, 2010. "The Economics of Clusters: Lessons from the French Experience," OUP Catalogue, Oxford University Press, number 9780199592203, December.
- Okuno, Masahiro & Zilcha, Itzhak, 1983. "Optimal steady-state in stationary consumption-loan type models," Journal of Economic Theory, Elsevier, vol. 31(2), pages 355-363, December.
- Cass, David & Okuno, Masahiro & Zilcha, Itzhak., .
"The Role of Money in Supporting the Pareto Optimality of Competitive Equilibrium in Consumption-Loan Type Models,"
242, California Institute of Technology, Division of the Humanities and Social Sciences.
- Cass, David & Okuno, Masahiro & Zilcha, Itzhak, 1979. "The role of money in supporting the pareto optimality of competitive equilibrium in consumption-loan type models," Journal of Economic Theory, Elsevier, vol. 20(1), pages 41-80, February.
- Gale, David, 1973. "Pure exchange equilibrium of dynamic economic models," Journal of Economic Theory, Elsevier, vol. 6(1), pages 12-36, February.
- Christian Ghiglino & Mich Tvede, .
"No-trade and uniqueness of steady-states,"
_002, Theory and Mathematics of the Economy and the Society.
- 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.
- Burke, Jonathan L, 1995. "Existence of a Pareto-Optimal Equilibrium in Nearly-Stationary Overlapping-Generations Economies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 5(2), pages 247-61, March.
When requesting a correction, please mention this item's handle: RePEc:cor:louvco:2012033. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alain GILLIS)
If references are entirely missing, you can add them using this form.