×

zbMATH — the first resource for mathematics

Equitable intergenerational preferences on restricted domains. (English) Zbl 1180.91085
Summary: This paper examines the existence of equitable preferences on intergenerational consumption paths in an infinite horizon setting. There are two ethical considerations that capture the concept of intergenerational equity: inequality aversion in allocations and equality in treating generations. They are embodied in the Pigou-Dalton principle and anonymity, respectively. We investigate the existence of binary relations that satisfy these two axioms, as well as other standard axioms, such as monotonicity, transitivity, or continuity, on various domains. We show that any domain admitting such a binary relation is quite restricted: its interior is empty and contains no sustainable consumption path.

MSC:
91B08 Individual preferences
PDF BibTeX XML Cite
Full Text: DOI
References:
[1] Brown DJ, Lewis LM (1981) Myopic economic agents. Econometrica 49:359–368 · Zbl 0451.90024 · doi:10.2307/1913315
[2] Campbell D (1985) Impossibility theorems and infinite horizon planning. Soc Choice Welfare 2:283–293 · Zbl 0578.90001 · doi:10.1007/BF00292691
[3] Chichilnisky G (1996) An axiomatic approach to sustainable development. Soc Choice Welfare 14:231–257 · Zbl 0846.90005 · doi:10.1007/BF00183353
[4] Dalton H (1920) The measurement of inequality of incomes. Econ J 30:348–61 · doi:10.2307/2223525
[5] Diamond P (1965) The evaluation of infinite utility streams. Econometrica 33:170–177 · Zbl 0127.36602 · doi:10.2307/1911893
[6] Epstein L (1986a) Intergenerational preference orderings. Soc Choice Welfare 3:151–160 · Zbl 0596.90004 · doi:10.1007/BF00433532
[7] Epstein L (1986b) Intergenerational consumption rules: an axiomatization of utilitarianism and egalitarianism. J Econ Theory 38:280–297 · Zbl 0604.90010 · doi:10.1016/0022-0531(86)90119-5
[8] Fleurbaey M, Michel P (2001) Transfer principles and inequality aversion, with an application to optimal growth. Math Soc Sci 42:1–11 · Zbl 0980.91060 · doi:10.1016/S0165-4896(01)00066-X
[9] Fleurbaey M, Michel P (2003) Intertemporal equity and the extension of the Ramsey criterion. J Math Econ 39:777–802 · Zbl 1046.91104 · doi:10.1016/S0304-4068(03)00054-5
[10] Lauwers L (1997a) Continuity and equity with infinite horizons. Soc Choice Welfare 14:345–356 · Zbl 0886.90024 · doi:10.1007/s003550050070
[11] Lauwers L (1997b) Rawlsian equity and generalised utilitarianism with an infinite population. Econ Theory 9:143–150 · Zbl 0872.90007
[12] Moulin H (1988) Axioms of cooperative decision making. Cambridge University Press, New York · Zbl 0699.90001
[13] Pigou AC (1912) Economics of Welfare, 4th edn, 1932. Macmillan, London
[14] Redekop J (1991) Social welfare functions on restricted economic domains. J Econ Theory 53:396–427 · Zbl 0735.05002 · doi:10.1016/0022-0531(91)90162-W
[15] Sakai T (2003a) An axiomatic approach to intergenerational equity. Soc Choice Welfare 20:167–176 · Zbl 1073.91566 · doi:10.1007/s003550200180
[16] Sakai T (2003b) Intergenerational preferences and sensitivity to the present. Econ Bull 4–26:1–5
[17] Shinotsuka T (1998) Equity, continuity, and myopia: a generalization of Diamond’s impossibility theorem. Soc Choice Welfare 15:21–30 · Zbl 0894.90010 · doi:10.1007/s003550050089
[18] Stokey N, Lucas R, Prescott E (1989) Recursive methods in economic dynamics. Harvard University Press, Cambridge, Massachusetts · Zbl 0774.90018
[19] Svensson LG (1980) Equity among generations. Econometrica 48:1251–1256 · Zbl 0436.90029 · doi:10.2307/1912181
[20] Thomson W (1988) A study of choice correspondences in economies with a variable number of agents. J Econ Theory 46:237–254 · Zbl 0657.90019 · doi:10.1016/0022-0531(88)90130-5
[21] von Weizs√§cker CC (1960) Existence of optimal programmes of accumulation for an infinite time horizon. Rev Econ Studies 32:85–104
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.