Maximin, Viability and Sustainability
Vincent Martinet and
Luc Doyen ()
No 2010-19, EconomiX Working Papers from University of Paris Nanterre, EconomiX
The maximin criterion defines the highest utility level which can be sustained in an intergenerational equity perspective. The viability approach characterizes all the economic trajectories sustaining a given, not necessarily maximal, utility level. In this paper, we exhibit the strong links between maximin and viability: We show that the value function of the maximin problem can be obtained in the viability framework via a static optimization problem under constraints. This result allows us to extend the maximin approach beyond optimality and characterize the sustainability of other economic trajectories. In particular, we show how the maximin value and viability kernel can be combined as sustainability indicators along any economic trajectory. Attention is especially paid to positive net investment at maximin prices, which is shown to be necessary to maintain the productive capacities of the economy. The Dasgupta-Heal-Solow model illustrates the assertions.
Keywords: Sustainability; Maximin; Viability; Dynamics; Optimality (search for similar items in EconPapers)
Pages: 26 pages
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed
Downloads: (external link)
Journal Article: Maximin, viability and sustainability (2012)
Working Paper: Maximin, Viability and Sustainability (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:drm:wpaper:2010-19
Access Statistics for this paper
More papers in EconomiX Working Papers from University of Paris Nanterre, EconomiX Contact information at EDIRC.
Bibliographic data for series maintained by Valerie Mignon ().