Mabrouk, Mohamed (2006): Allaisanonymity as an alternative to the discountedsum criterion in the calculus of optimal growth II: Pareto optimality and some economic interpretations.

PDF
MPRA_paper_15475.pdf Download (390kB)  Preview 
Abstract
This paper studies the Paretooptimality of the consensual optimum established in "Allaisanonymity as an alternative to the discountedsum criterion I: consensual optimality" (Mabrouk 2006a). For that, a Paretooptimality criterion is set up by the application of the generalized Karush, Kuhn and Tucker theorem and thanks to the decomposition of the space of geometricallygrowing real sequences. That makes it possible to find sufficient conditions so that a bequestrule path is Paretooptimal. Through an example, it is then shown that the golden rule must be checked to achieve Allaisanonymous optimality. The introduction of an additive altruism makes it possible to highlight the intergenerationalpreference rate compatible with Allaisanonymous optimality. In this approach, it is not any more the optimality which depends on the intergenerationalpreference rate, but the optimal intergenerationalpreference rate which rises from Allaisanonymous optimality.
Item Type:  MPRA Paper 

Original Title:  Allaisanonymity as an alternative to the discountedsum criterion in the calculus of optimal growth II: Pareto optimality and some economic interpretations 
Language:  English 
Keywords:  Intergenerational anonymity; Allaisanonymity; Intergenerational equity; Optimal growth; Technical change; Timepreference; Discountedsum criterion; Consensual criterion; Paretooptimality; 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 DecisionMaking > 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:  15475 
Depositing User:  Mohamed ben Ridha Mabrouk 
Date Deposited:  03 Jun 2009 00:13 
Last Modified:  02 Mar 2017 05:07 
References:  Y. Balasko, K. Shell, The OLG model, I: the case of pure exchange without money, Journal of Economic Theory 23(1980)281306 R. Barro, Are government bonds net wealth?, Journal of Political Economy 82(1974) 10961117 D. Cass, On capital overaccumulation in the aggregative, neoclassical model of economic growth: a complete characterization, Journal of Economic Theory 4(1972)200223 C. Groth, Course of advanced macroeconomics 2003, Institute of Economics, University of Copenhagen, www.econ.ku.dk B. Heijdra, R. van der Poeg, Foundations of modern macroeconomics, Oxford, 2002 K.R. Lakshmi, Twosided altruism, Lindhal equilibrium and Pareto optimality in OLG models, Working paper, University of HawaiiManoa, 2002 C. Le Van, H.C. Saglam, Optimal growth models and the Lagrange multiplier, Journal of Mathematical Economics 40(2004)393410 D. Luenberger, Optimization by vector spaces, WileyInterscience, New Ed edition 1997 Mabrouk, Optimal growth path in an OLG economy without timepreference assumptions, Annales Maghrébines de l'Ingénieur ENITTunis (in press), available at http://econwpa.wustl.edu/eps /ge/papers/0510/0510006.pdf M. Mabrouk, Allaisanonymity as an alternative to the discountedsum criterion in the calculus of optimal growth I: consensusal optimality (MRPA paper) A. MolinaAbraldes, J. PintosClapès, A complete characterization of Pareto optimality for general OLG economies, Journal of Economic Theory 113(2003)235252 M. SaezMarti, J. W. Weibull, Discounting and altruism to future decision makers, Journal of Economic Theory (in press) R. Solow, A contribution to the theory of optimal growth, Quarterly Journal of Economics 70(1956) 6594 
URI:  https://mpra.ub.unimuenchen.de/id/eprint/15475 