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A note on the characterization of optimal allocations in OLG mdels with multiple goods

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  • Jean-Marc Bonnisseau

    (Centre d'Economie de la Sorbonne - Paris School of Economics)

  • Lalaina Rakotonindrainy

    (Centre d'Economie de la Sorbonne - Paris School of Economics)

Abstract

We consider a pure exchange overlapping generations economy with a varying number of commodities and consumers per period having possibly non-complete non transitive preferences. We provide a geometric and direct proof of the Balasko-Shell characterization of Pareto optimal allocation. As a by-product, we compute an explicit Pareto improving transfer when the criterion is not satisfied, which is minimal for some suitable distance

Suggested Citation

  • Jean-Marc Bonnisseau & Lalaina Rakotonindrainy, 2015. "A note on the characterization of optimal allocations in OLG mdels with multiple goods," Documents de travail du Centre d'Economie de la Sorbonne 15003r, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne, revised Jul 2015.
    • Handle: RePEc:mse:cesdoc:15003r
    DOI: 10.1007/s11228-015-0342-7
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    References listed on IDEAS

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    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D50 - Microeconomics - - General Equilibrium and Disequilibrium - - - General
    • D62 - Microeconomics - - Welfare Economics - - - Externalities

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