Changes in social welfare in an intertemporal economy

Elvio Accinelli, Leobardo Plata Pérez () and Joss Sanchez-Perez ()

No 1611, Documentos de Trabajo (working papers) from Department of Economics - dECON

Abstract: General Equilibrium Theory (GE) scrutinizes the ability of markets to achieve efficient allocation of resources. The main purpose of this work is, in the framework to the GE to analyze, the possibility of design a mechanism enabling agents to make independent decisions compatible with social welfare. More precisely, we address the problem of the possibility of decentralization mechanism to sustain efficiency and social welfare at the same time. Specifically, introducing a social utility function, we argue on the possibility of improving the social welfare transferring resources between periods of the economy. This mechanism introduces a Rawlsian solution improving the welfare of the individuals worst positioned.

Keywords: Welfare; efficiency; decentralization (search for similar items in EconPapers)
JEL-codes: D6 D7 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2011-08
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Persistent link: https://EconPapers.repec.org/RePEc:ude:wpaper:1611

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