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Intergenerational anonymity as an alternative to the discounted- sum criterion in the calculus of optimal growth I: Consensual optimality

Listed author(s):
  • Mohamed Mabrouk

    (Ecole Supérieure de Statistique et d'Analyse de l'Information de Tunis)

The objective of this work is to try to define and calculate the optimal growth path, in the presence of exogenous technical change, without resorting to the discounted-sum criterion. The solution suggested is to consider an optimality criterion expressing an anonymous intergenerational consensus. The partial characterization of consensual optimality was made possible thanks to the decomposition of the dual of the space of sub-geometric sequences of reason p. The main finding is a relation between the marginal rate of substitution between bequest and heritage and the growth rate, relation which is a necessary condition for consensual optimality. The necessary study of the Pareto-optimality of the consensual optimum is the subject of a forthcoming paper « Intergenerational anonymity as an alternative to the discounted-sum criterion in the calculus of optimal growth II: Pareto-optimality and some economic interpretations »

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File URL: http://econwpa.repec.org/eps/ge/papers/0510/0510013.pdf
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Paper provided by EconWPA in its series GE, Growth, Math methods with number 0510013.

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Length: 35 pages
Date of creation: 31 Oct 2005
Handle: RePEc:wpa:wuwpge:0510013
Note: Type of Document - pdf; pages: 35
Contact details of provider: Web page: http://econwpa.repec.org

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