Infinite-horizon choice functions

Geir Asheim, Walter Bossert, Yves Sprumont () and Kotaro Suzumura

No 17/2006, Memorandum from Oslo University, Department of Economics

Abstract: We analyze infinite-horizon choice functions within the setting of a simple linear technology. Time consistency and efficiency are characterized by stationary consumption and inheritance functions, as well as a transversality condition. In addition, we consider the equity axioms Suppes-Sen, Pigou-Dalton, and resource monotonicity. We show that Suppes-Sen and Pigou-Dalton imply that the consumption and inheritance functions are monotone with respect to time—thus justifying sustainability—while resource monotonicity implies that the consumption and inheritance functions are monotone with respect to the resource. Examples illustrate the characterization results.

Keywords: Intergenerational resource allocation; infinite-horizon choice (search for similar items in EconPapers)
JEL-codes: D63 D71 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2006-05-15
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Infinite-horizon choice functions (2010)
Working Paper: Infinite-horizon choice functions (2008)
Working Paper: Infinite-Horizon Choice Functions (2006)
Working Paper: Infinite-Horizon Choice Functions (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:hhs:osloec:2006_017

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