Infinite-Horizon Choice Functions
Data(s) |
04/02/2008
04/02/2008
2006
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Resumo |
We analyze infinite-horizon choice functions within the setting of a simple linear technology. Time consistency and efficiency 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. |
Formato |
226224 bytes application/pdf |
Identificador | |
Idioma(s) |
en |
Publicador |
Université de Montréal, Département de sciences économiques |
Relação |
Cahier de recherche #2006-08 |
Palavras-Chave | #Intergenerational resource allocation #infinite-horizon choice #D63 #D71 |
Tipo |
Article |