A never-decisive and anonymous criterion for optimal growth models

Alain Ayong Le Kama (), Thai Ha-Huy, Cuong Le van and Katheline Schubert

Economic Theory, 2014, vol. 55, issue 2, 306 pages

Abstract: We address in this paper the question of the existence of a Social Welfare Function that would be sustainable and would allow us to obtain solutions to optimal growth models. We define sustainability by two new axioms called Never-decisiveness of the present and Never-decisiveness of the future. We first show that a SWF which has Never-decisiveness properties cannot be defined on a ball of $$l_{\infty }^{+}$$ l ∞ + . We must (i) restrict to the set of utility streams for which the value of the SWF is finite and (ii) introduce additional assumptions in order to obtain the Never-decisiveness properties. Our main result in this paper is therefore to show that the undiscounted utilitarian criterion is an anonymous and never-decisive criterion for optimal growth models. We consider the set of utilities of consumptions which are generated by a specific technology, namely a technology with decreasing returns for high levels of capital, and restrict ourselves to good programs, i.e., any program for which intertemporal utility is well defined. Copyright Springer-Verlag Berlin Heidelberg 2014

Keywords: Anonymity; Intergenerational equity; Natural resources; Never-decisiveness of the future; Never-decisiveness of the present; No-dictatorship of the future; No-dictatorship of the present; Optimal growth models; Social welfare function; Sustainability; D60; D70; D90; Q0 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (9)

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Working Paper: A never-decisive and anonymous criterion for optimal growth models (2014)
Working Paper: A never-decisive and anonymous criterion for optimal growth models (2014)
Working Paper: A Never-decisive and Anonymous Criterion for Optimal Growth Models (2013)
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DOI: 10.1007/s00199-013-0759-x

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