Infinite-horizon choice functions

Geir Asheim, Walter Bossert, Yves Sprumont (), Kotaro Suzumura and コウタロウ スズムラ

No 379, PIE/CIS Discussion Paper from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University

Abstract: We analyze infinite-horizon choice functions within the setting of a simple technology. Efficiency and time consistency 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: 23 pages
Date: 2008-06
Note: This version: January 23, 2008, An earlier version of the paper was presented at Seoul National University, Victoria University of Wellington, the University of Auckland, the 2005 polarization and conflict conference in Milan, the 2006 workshop on intergenerational resource allocation in Montr?al and the University of New South Wales.
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https://hermes-ir.lib.hit-u.ac.jp/hermes/ir/re/15825/pie_dp379.pdf

Related works:
Journal Article: Infinite-horizon choice functions (2010)
Working Paper: Infinite-horizon choice functions (2006)
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:hit:piecis:379

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