Efficiency of competitive equilibria in economies with time-dependent preferences

Pawel Dziewulski

Journal of Economic Theory, 2015, vol. 159, issue PA, 311-325

Abstract: This paper focuses on welfare properties of equilibria in exchange economies with time-dependent preferences. We reintroduce the notion of time-consistent overall Pareto efficiency proposed by Herings and Rohde (2006) and show that, whenever all agents in the economy are sophisticated, any equilibrium allocation is efficient in this sense. Therefore, we present a version of the First Fundamental Welfare Theorem for this class of economies.

Keywords: Time-dependent preferences; Competitive equilibrium; First Fundamental Welfare Theorem; Hyperbolic discounting (search for similar items in EconPapers)
JEL-codes: D51 D61 D91 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jetheo:v:159:y:2015:i:pa:p:311-325

DOI: 10.1016/j.jet.2015.07.003

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