The MBR Intertemporal Choice Criterion and Rawls' Just Savings Principle
This paper provides general theorems about the control that maxi- mizes the mixed Bentham-Rawls (MBR) criterion for intergenerational justice, which was introduced in Alvarez-Cuadrado and Long (2009). We establish sufficient concavity conditions for a candidate trajectory to be optimal and unique. We also show that the state variable is monotonic un- der rather weak conditions. And finally we prove that inequality among generations, captured by the gap between the poorest and the richest generations, is lower when optimization is performed under the MBR cri- terion rather than under the discounted utilitarian criterion. The two last properties are in line with some aspects of the rawlsian just savings principle.
Year of publication: |
2013-02
|
---|---|
Authors: | Figuières, Charles ; Long, Ngo Van ; Tidball, Mabel |
Institutions: | LAboratoire Montpelliérain d'Économie Théorique et Appliquée (LAMETA), Faculté de sciences économiques |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Public Infrastructure, non Cooperative Investments and Endogenous Growth
Figuières, Charles, (2012)
-
Sustainable exploitation of a natural resource: a satisfying use of Chichilnisky's criterion
Figuières, Charles, (2006)
-
Public infrastructure, non cooperative investments and endogeneous growth
Figuières, Charles, (2007)
- More ...