Does Dynamic Market Competition with Technological Innovation Leave No One Behind?: Examinations of Hicksian Optimism in OLG Frameworks

Yongsheng Xu and Naoki Yoshihara

No 784, Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

Abstract: In a simple Overlapping Generations model, we define `improvements' due to technological progress in the economy and introduce and study the notion of Hicksian optimism, which captures the idea that no one, in the `long-run', is left behind due to such improvements in the economy, and show that the market mechanism with technological progress unavoidably leaves some individuals behind and cannot deliver the Hicksian optimism. This negative result holds for a broader class of intertemporal resource allocation mechanisms.

Keywords: dynamic market competition with technological progress; Hicksian optimism; Walrasian allocation rule; weak Pareto effciency; individual rationality; overlapping generations economy (search for similar items in EconPapers)
JEL-codes: D30 D51 D60 O33 P10 P20 P40 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2026-09
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hit-u.repo.nii.ac.jp/record/2062592/files/DP784.pdf

Related works:
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:hit:hituec:784

Access Statistics for this paper

More papers in Discussion Paper Series from Institute of Economic Research, Hitotsubashi University Contact information at EDIRC.
Bibliographic data for series maintained by Hiromichi Miyake ().