A note on the characterization of optimal allocations in OLG economies with multiple goods

Jean-Marc Bonnisseau and Lalaina Rakotonindrainy

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: We consider a pure exchange overlapping generations economy with finitely many commodities and consumers per period having possibly non-complete non transitive preferences. We provide a geometric and direct proof of the Balasko-Shell characterization of Pareto optimal allocation. To avoid some smoothness assumption, we replace the assumption on the curvature of the indifference surface by geometric properties of preferred sets. In particular, we use the notion of prox-regularity, introduced in variational analysis by Rockafellar and Poliquin. We provide preliminary results and explain how the multi-consumer case can be simplified by considering aggregate feasible Pareto improving transfer. We provide the proof and we show which assumptions are used for the "if" part and for the "only if" part of the criterion

Keywords: Overlapping generations model; preference set; normal cone; equilibrium; Pareto optimality (search for similar items in EconPapers)
JEL-codes: C62 D50 D62 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2015-01
New Economics Papers: this item is included in nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
ftp://mse.univ-paris1.fr/pub/mse/CES2015/15003.pdf (application/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:mse:cesdoc:15003

Access Statistics for this paper

More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().