Infinite-horizon choice functions
We analyze infinite-horizon choice functions within the setting of a simple technology. Efficiency and time consistency are characterized by stationary consumption and inheritance functions, as well as a transversality condition. In addition, we consider the equity axioms Suppes-Sen, Pigou-Dalton, and resource monotonicity. We show that Suppes-Sen and Pigou-Dalton imply that the consumption and inheritance functions are monotone with respect to time - thus justifying sustainability - while resource monotonicity implies that the consumption and inheritance functions are monotone with respect to the resource. Examples illustrate the characterization results.
|Date of creation:||Jun 2008|
|Date of revision:|
|Note:||This version: January 23, 2008, An earlier version of the paper was presented at Seoul National University, Victoria University of Wellington, the University of Auckland, the 2005 polarization and conflict conference in Milan, the 2006 workshop on intergenerational resource allocation in Montréal and the University of New South Wales.|
|Contact details of provider:|| Postal: 2-1 Naka, Kunitachi City, Tokyo 186-8603|
Web page: http://cis.ier.hit-u.ac.jp/
More information through EDIRC
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.:
- Asheim, G.B., 1989.
"Unjust Intergenerational Allocations,"
09-89, Norwegian School of Economics and Business Administration-.
- Tjalling C. Koopmans, 1959. "Stationary Ordinal Utility and Impatience," Cowles Foundation Discussion Papers 81, Cowles Foundation for Research in Economics, Yale University.
- Basu, Kaushik & Mitra, Tapan, 2003.
"Utilitarianism for Infinite Utility Streams: A New Welfare Criterion and Its Axiomatic Characterization,"
03-05, Cornell University, Center for Analytic Economics.
- 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.
- BOSSERT, Walter & SUZUMURA, Kotaro, 2006.
"A Characterization of Consistent Collective Choice Rules,"
Cahiers de recherche
09-2006, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Bossert, Walter & Suzumura, Kotaro, 2008. "A characterization of consistent collective choice rules," Journal of Economic Theory, Elsevier, vol. 138(1), pages 311-320, January.
- BOSSERT, Walter & SUZUMURA, Kotaro, 2006. "A Characterization of Consistent Collective Choice Rules," Cahiers de recherche 2006-12, Universite de Montreal, Departement de sciences economiques.
- Geir Asheim & Bertil Tungodden, 2004. "Resolving distributional conflicts between generations," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 24(1), pages 221-230, 07.
- Bossert, Walter & Sprumont, Yves & Suzumura, Kotaro, 2007. "Ordering infinite utility streams," Journal of Economic Theory, Elsevier, vol. 135(1), pages 579-589, July.
- Walter Bossert & Yves Sprumont & Kotaro Suzumura, 2005.
London School of Economics and Political Science, vol. 72(286), pages 185-200, 05.
- Bossert, Walter & Sprumont, Yves & Suzumura, Kotaro, 2002. "Consistent Rationalizability," Discussion Paper 82, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- BOSSERT, Walter & SPRUMONT, Yves & SUZUMURA, Kotaro, 2002. "Consistent Rationalizability," Cahiers de recherche 2002-12, Universite de Montreal, Departement de sciences economiques.
- Asheim, G.B. & Buchholz, W. & Tungodden, B., 1999.
5/99, Norwegian School of Economics and Business Administration-.
- Mitra, Tapan, 1979. "On the Value Maximizing Property of Infinite Horizon Efficient Programs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 20(3), pages 635-42, October.
- Basu, Kaushik & Mitra, Tapan, 2003.
"Aggregating Infinite Utility Streams with Inter-generational Equity: The Impossibility of Being Paretian,"
03-03, Cornell University, Center for Analytic Economics.
- 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, 09.
- D. Cass & M. E. Yaari, 1971. "Present Values Playing the Role of Efficiency Prices in the One-Good Growth Model," Review of Economic Studies, Oxford University Press, vol. 38(3), pages 331-339.
- William Thomson, 2007. "Fair Allocation Rules," RCER Working Papers 539, University of Rochester - Center for Economic Research (RCER).
- Chiaki Hara & Tomoichi Shinotsuka & Kotaro Suzumura & Yongsheng Xu, 2008. "Continuity and egalitarianism in the evaluation of infinite utility streams," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 31(2), pages 179-191, August.
- Asheim, Geir B. & Tungodden, Bertil, 2005. "A new equity condition for infinite utility streams and the possibility of being Paretian," Memorandum 08/2005, Oslo University, Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:hit:piecis:379. 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: (Digital Resources Section, Hitotsubashi University Library)
If references are entirely missing, you can add them using this form.