Economics at your fingertips  

Intergenerational anonymity as an alternative to the discounted- sum criterion in the calculus of optimal growth II: Pareto optimality and some economic interpretations

Mohamed Mabrouk ()

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

Abstract: This paper studies the Pareto-optimality of the consensual optimum established in 'Intergenerational anonymity as an alternative to the discounted-sum criterion I: consensual optimality'. For that, a Pareto- optimality criterion is set up by the application of the generalized Karush, Kuhn and Tucker theorem and thanks to the decomposition of the space of subgeometric sequences of reason p. That makes it possible to find sufficient conditions so that a bequest-rule path is Pareto- optimal. Through an example, it is then shown that the golden rule must be checked to achieve anonymous optimality. The introduction of an additive altruism makes it possible to highlight the intergenerational- preference rate compatible with anonymous optimality. In this approach, it is not any more the optimality which depends on the intergenerational-preference rate, but the optimal intergenerational- preference rate which rises from anonymous optimality.

Keywords: Intergenerational anonymity; Intergenerational equity; Optimal growth; Technical change; Time-preference; Discounted-sum criterion; Consensual criterion; Pareto-optimality; OG economy (search for similar items in EconPapers)
JEL-codes: D90 C61 D71 D63 O41 O30 (search for similar items in EconPapers)
Date: 2005-11-08
Note: Type of Document - pdf; pages: 36
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (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:

Access Statistics for this paper

More papers in GE, Growth, Math methods from University Library of Munich, Germany
Bibliographic data for series maintained by EconWPA ().

Page updated 2019-01-23
Handle: RePEc:wpa:wuwpge:0511007