Mabrouk, Mohamed
(2006):
*Allais-anonymity as an alternative to the discounted-sum criterion in the calculus of optimal growth I: Consensual optimality.*

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## Abstract

The objective of this work is to try to define and calculate the optimal growth path, in the presence of exogenous technical change, without resorting to the discounted-sum criterion. The solution suggested is to consider an optimality criterion expressing an Allais-anonymous intergenerational consensus. The partial characterization of consensual optimality was made possible thanks to the decomposition of the dual of the space of sub-geometric sequences of reason p. The main finding is a relation between the marginal rate of substitution between bequest and heritage, and the growth rate, relation which is a necessary condition for consensual optimality. The necessary study of the Pareto-optimality of the consensual optimum is the subject of a forthcoming paper "Allais-anonymity as an alternative to the discounted-sum criterion in the calculus of optimal growth II: Pareto optimality and some economic interpretations".

Item Type: | MPRA Paper |
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Original Title: | Allais-anonymity as an alternative to the discounted-sum criterion in the calculus of optimal growth I: Consensual optimality |

Language: | English |

Keywords: | Intergenerational anonymity; Intergenerational equity; Optimal growth; Technical change; Time-preference; Discounted-sum criterion; Consensual criterion; OG economy |

Subjects: | O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models D - Microeconomics > D7 - Analysis of Collective Decision-Making > D71 - Social Choice ; Clubs ; Committees ; Associations D - Microeconomics > D6 - Welfare Economics > D63 - Equity, Justice, Inequality, and Other Normative Criteria and Measurement O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O30 - General D - Microeconomics > D9 - Intertemporal Choice > D90 - General C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis |

Item ID: | 10512 |

Depositing User: | Mohamed ben Ridha Mabrouk |

Date Deposited: | 21 Nov 2008 04:58 |

Last Modified: | 01 Oct 2019 03:54 |

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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/10512 |