Pareto optimality of the golden rule equilibrium in an overlapping generations model with production and transfers

Jean-François Mertens and Anna Rubinchik ()

No 2012033, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: The main result is that the golden rule equilibrium (GRE) is Pareto optimal (in the classical sense) in an overlapping generations (OG) model with constant-returns-to-scale production, transfers, arbitrary life-time productivity and CES instantaneous felicity. In addition, we extend Cass and Yaari's [10] equivalence between efficiency (aggregate consumption dominance) and the present value dominance (with evaluation made using a candidate equilibrium price path).

Keywords: infinite economies; overlapping generations; exogenous growth; golden rule equilibrium (search for similar items in EconPapers)
JEL-codes: D50 E20 (search for similar items in EconPapers)
Date: 2012-09-14
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: PARETO OPTIMALITY OF THE GOLDEN RULE EQUILIBRIUM IN AN OVERLAPPING GENERATIONS MODEL WITH PRODUCTION AND TRANSFERS (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cor:louvco:2012033

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