Infinite-horizon choice functions

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Memorandum ; No. 2006,17

Classification and Topics

• Classification: Wirtschaft ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Social Choice; Clubs; Committees; Associations
• Subject: Intergenerational resource allocation ; infinite-horizon choice ; Soziale Wohlfahrtsfunktion ; Intertemporale Allokation ; Generationenbeziehungen ; Wiederholte Spiele ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Asheim, Geir B. ; Bossert, Walter ; Sprumont, Yves ; Suzumura, Kotaro
• Event: Veröffentlichung
• (who): University of Oslo, Department of Economics
• (where): Oslo
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/63021
• Last update: 10.03.2025, 11:44 AM CET