EconPapers    
Economics at your fingertips  
 

The limit of discounted utilitarianism

Adam Jonsson () and Mark Voorneveld
Additional contact information
Adam Jonsson: Department of Engineering Sciences and Mathematics, Postal: Luleå University of Technology, 97187 Luleå, Sweden

No 748, SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics

Abstract: This paper presents an infinite-horizon version of intergenerational utilitarianism. By studying discounted utilitarianism as the discount factor tends to one, we obtain a new welfare criterion: limit-discounted utilitarianism (LDU). We show that LDU meets standard assumptions of efficiency, equity, and interpersonal comparability, but allows us to compare more pairs of utility streams than commonly-used utilitarian criteria, including the overtaking criterion and the catching-up criterion. We also introduce a principle of compensation for postponements of utility streams and use it to characterize the LDU criterion on a restricted domain.

Keywords: utilitarianism; intergenerational equity; time preference (search for similar items in EconPapers)
JEL-codes: D63 D70 D90 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ger, nep-hpe and nep-upt
Date: 2014-03-17, Revised 2017-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://swopec.hhs.se/hastef/papers/hastef0748.pdf (application/pdf)

Related works:
Journal Article: The limit of discounted utilitarianism (Forthcoming) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:hastef:0748

Access Statistics for this paper

More papers in SSE/EFI Working Paper Series in Economics and Finance from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, 113 83 Stockholm, Sweden. Contact information at EDIRC.
Series data maintained by Helena Lundin ().

 
Page updated 2017-10-18
Handle: RePEc:hhs:hastef:0748