TY - JOUR
T1 - Nonpaternalistic intergenerational altruism
AU - Ray, Debraj
N1 - Funding Information:
’ The implications of Rawlsian theory for a “just savings” Arrow 123 and Dasgupta [ 131, using a model of intergenerational * This research was supported by National Science Foundation Institute for Mathematical Studies in the Social Sciences, Stanford much to the helpful comments of Peter Streufert and has benefited anonymous referee.
PY - 1987/2
Y1 - 1987/2
N2 - The paper develops a concept of equilibrium behaviour and establishes its existence in a model of nonpaternalistic intergenerational altruism. Each generation derives utility from its own consumption and the utilities of its successors. Equilibrium capital stocks are time-monotone and therefore converge to a steady state. Finally. when each generation's utility depends on that of at least two successors, equilibria may be inefficient. This is shown by an example, where feasible programs exist providing greater consumption (compared to the equilibrium path) for every generation.
AB - The paper develops a concept of equilibrium behaviour and establishes its existence in a model of nonpaternalistic intergenerational altruism. Each generation derives utility from its own consumption and the utilities of its successors. Equilibrium capital stocks are time-monotone and therefore converge to a steady state. Finally. when each generation's utility depends on that of at least two successors, equilibria may be inefficient. This is shown by an example, where feasible programs exist providing greater consumption (compared to the equilibrium path) for every generation.
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U2 - 10.1016/0022-0531(87)90008-1
DO - 10.1016/0022-0531(87)90008-1
M3 - Article
AN - SCOPUS:38249038363
SN - 0022-0531
VL - 41
SP - 112
EP - 132
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -