Combining Rights and Welfarism: A New Approach to Intertemporal Evaluation of Social Alternatives
We propose a new criterion which reflects both the concern for welfare (utility) and the concern for rights in the evaluation of economic development paths. The concern for rights is captured by a pre-ordering over combinations of thresholds (floors or ceilings on various quantitative indicators) that serve as constraints on actions and on levels of state variables. These thresholds are interpreted as minimal rights to be guaranteed to all generations. They are endogenously chosen within the set of all feasible thresholds, accounting for the "cost in terms of welfare" of achieving these rights. We apply the criterion to several examples, including the standard Dasgupta-Heal-Solow model of resource extraction and capital accumulation. We show that if the weight given to rights in the criterion is sufficiently high, the optimal solution may be on the threshold possibility frontier. The development path is then "driven" by the rights. In particular, if a minimal consumption is considered as a right, constant consumption can be optimal even with a positive utility discount rate. The shadow prices of thresholds play an important role in the determination of the rate of discount to be applied to social investment projects.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Postal: C.P. 6128, Succ. centre-ville, Montréal (PQ) H3C 3J7|
Phone: (514) 343-6557
Fax: (514) 343-7221
Web page: http://www.cireq.umontreal.ca
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.:
- Chichilnisky, Graciela, 1995.
"An axiomatic approach to sustainable development,"
8609, University Library of Munich, Germany.
- Sen, Amartya Kumar, 1970. "The Impossibility of a Paretian Liberal," Scholarly Articles 3612779, Harvard University Department of Economics.
- Antoine d'Autume & John M. Hartwick & Katheline Schubert, 2009.
"The zero discounting and maximin optimal paths in a simple model of global warming,"
Documents de travail du Centre d'Economie de la Sorbonne
09013, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- d'Autume, Antoine & Hartwick, John M. & Schubert, Katheline, 2010. "The zero discounting and maximin optimal paths in a simple model of global warming," Mathematical Social Sciences, Elsevier, vol. 59(2), pages 193-207, March.
- Antoine D'Autume & John Hartwick & Katheline Schubert, 2010. "The Zero Discounting and Maximin Optimal Paths in a Simple Model of Global Warming," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00547282, HAL.
- Antoine D'Autume & John M. Hartwick & Katheline Schubert, 2009. "The Zero discounting and maximin optimal paths in a simple model of global warming," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00367917, HAL.
- Geir B. Asheim & Stéphane Zuber, 2013.
"A complete and strongly anonymous leximin relation on infinite streams,"
Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers)
- Geir Asheim & Stéphane Zuber, 2013. "A complete and strongly anonymous leximin relation on infinite streams," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 41(4), pages 819-834, October.
- Geir B. Asheim & Stéphane Zuber, 2011. "A Complete and Strongly Anonymous Leximin Relation on Infinite Streams," CESifo Working Paper Series 3578, CESifo Group Munich.
- Wulf Gaerther & Prasanta K. Pattanaik & Kotaro Suzumura, 1991.
"Individual Rights Revisited,"
Discussion Paper Series
a238, Institute of Economic Research, Hitotsubashi University.
- Maurice Salles, 2005. "Social Choice," Post-Print halshs-00337075, HAL.
- Suzumura, Kotaro & Yoshihara, Naoki, 2008.
"On Initial Conferment of Individual Rights,"
Discussion Paper Series
a502, Institute of Economic Research, Hitotsubashi University.
- Francisco Alvarez-Cuadrado & Ngo Van Long, 2007.
"A Mixed Bentham-Rawls Criterion For Intergenerational Equity: Theory And Implications,"
Departmental Working Papers
2007-03, McGill University, Department of Economics.
- Alvarez-Cuadrado, Francisco & Van Long, Ngo, 2009. "A mixed Bentham-Rawls criterion for intergenerational equity: Theory and implications," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 154-168, September.
- ALVAREZ-CUADRADO, Francisco & LONG, Ngo Van, 2007. "A Mixed Bentham-Rawls Criterion for Intergenerational Equity : Theory and Implications," Cahiers de recherche 06-2007, Centre interuniversitaire de recherche en économie quantitative, CIREQ.
- Takayama,Akira, 1985. "Mathematical Economics," Cambridge Books, Cambridge University Press, number 9780521314985, June.
- Chakravorty, Ujjayant & Moreaux, Michel & Tidball, Mabel, 2006.
"Ordering the Extraction of Polluting Nonrenewable Resources,"
IDEI Working Papers
415, Institut d'Économie Industrielle (IDEI), Toulouse.
- Ujjayant Chakravorty & Michel Moreaux & Mabel Tidball, 2008. "Ordering the Extraction of Polluting Nonrenewable Resources," American Economic Review, American Economic Association, vol. 98(3), pages 1128-44, June.
- CHAKRAVORTY Ujjayant & MOREAUX Michel & TIDBALL Mabel, 2006. "Ordering the Extraction of Polluting Nonrenewable Resources," LERNA Working Papers 06.19.212, LERNA, University of Toulouse.
- Bezalel Peleg, 1997. "Effectivity functions, game forms, games, and rights," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 15(1), pages 67-80.
- Sen, Amartya, 1970. "The Impossibility of a Paretian Liberal," Journal of Political Economy, University of Chicago Press, vol. 78(1), pages 152-57, Jan.-Feb..
- Sugden, Robert, 1985. "Liberty, Preference, and Choice," Economics and Philosophy, Cambridge University Press, vol. 1(02), pages 213-229, October.
- Kotaro Suzumura, 2005. "An interview with Paul Samuelson: welfare economics, “old” and “new”, and social choice theory," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 25(2), pages 327-356, December.
- Vincent Martinet & Luc Doyen, 2007.
"Sustainability of an economy with an exhaustible resource: A viable control approach,"
- Martinet, V. & Doyen, L., 2007. "Sustainability of an economy with an exhaustible resource: A viable control approach," Resource and Energy Economics, Elsevier, vol. 29(1), pages 17-39, January.
- Martinet, Vincent, 2011. "A characterization of sustainability with indicators," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 183-197, March.
- Long, Ngo Van, 1979. "Two Theorems on Generalized Diminishing Returns and Their Applications to Economic Analysis," The Economic Record, The Economic Society of Australia, vol. 55(148), pages 58-63, March.
- Chichilnisky, Graciela & Heal, Geoffrey & Beltratti, Andrea, 1995. "The Green Golden Rule," Economics Letters, Elsevier, vol. 49(2), pages 175-179, August.
- R. M. Solow, 1974.
"Intergenerational Equity and Exhaustible Resources,"
Review of Economic Studies,
Oxford University Press, vol. 41(5), pages 29-45.
- R. M. Solow, 1973. "Intergenerational Equity and Exhaustable Resources," Working papers 103, Massachusetts Institute of Technology (MIT), Department of Economics.
- Sen, Amartya K, 1976. "Liberty, Unanimity and Rights," Economica, London School of Economics and Political Science, vol. 43(171), pages 217-45, August.
- Kenneth Stollery, 1998. "Constant Utility Paths and Irreversible Global Warming," Canadian Journal of Economics, Canadian Economics Association, vol. 31(3), pages 730-742, August.
When requesting a correction, please mention this item's handle: RePEc:mtl:montec:01-2012. 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: (Sharon BREWER)
If references are entirely missing, you can add them using this form.