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Intergenerational anonymity as an alternative to the discounted- sum criterion in the calculus of optimal growth I: Consensual optimality

Mohamed Mabrouk ()

GE, Growth, Math methods from University Library of Munich, Germany

Abstract: The objective of this work is to try to define and calculate the optimal growth path, in the presence of exogenous technical change, without resorting to the discounted-sum criterion. The solution suggested is to consider an optimality criterion expressing an anonymous intergenerational consensus. The partial characterization of consensual optimality was made possible thanks to the decomposition of the dual of the space of sub-geometric sequences of reason p. The main finding is a relation between the marginal rate of substitution between bequest and heritage and the growth rate, relation which is a necessary condition for consensual optimality. The necessary study of the Pareto-optimality of the consensual optimum is the subject of a forthcoming paper « Intergenerational anonymity as an alternative to the discounted-sum criterion in the calculus of optimal growth II: Pareto-optimality and some economic interpretations »

Keywords: Intergenerational anonymity; Intergenerational equity; Optimal growth; Technical change; Time-preference; Discounted-sum criterion; Consensual criterion; OG economy (search for similar items in EconPapers)
JEL-codes: C61 D63 D71 D90 O30 O41 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2005-10-31
Note: Type of Document - pdf; pages: 35
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpge:0510013

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