Impossibilities of Paretian Social Welfare Functions for Infinite Utility Streams with Distributive Equity
This paper examines the logical relationship between distributive equity and efficiency in aggregating infinite utility streams. Our main results show that there exist social welfare functions which satisfy the axioms of Pigou-Dalton Transfer Principle and a weak version of efficiency, but there exists no social welfare function which satisfies all of the distributive equity requirements and Weak Pareto Principle at the same time. Thus, we can prove that no Paretian ranking can satisfy the numerical representability and all of the distributive equity properties in the setting of intertemporal social choice.
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|Note:||This Version: August, 2011|
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