This paper characterizes the optimal income and wealth tax schedules when rates of return are endogenous. Individuals exert investment effort in order to increase the return on their investments. Agents are heterogeneous along two dimensions: their investment ability and their labour market...

In this paper the theory of rank-dependent expected utility (RDEU) is substituted for the theory of expected utility (EU) in a model of optimal provision of public goods. The substitution generalizes the Samuelson rule, previously modified to include deadweight loss and tax evasion loss.

Evaluation of climate policies and other issues requires a variable population setting where population is endogenously determined. We propose and axiomatize the rank-discounted critical-level utilitarian social welfare order. It is shown to ll out the space between critical-level utilitarianism...

I study the egalitarian way of distributing resources across generations. Distributional equity deeply conflicts with the Pareto principle: efficient allocations cannot guarantee that i) each generation be assigned a consumption bundle that is at least as large as an arbitrarily small fraction...

Climate policies have stochastic consequences that involve a great number of generations. This calls for evaluating social risk (what kind of societies will future people be born into) rather than individual risk (what will happen to people during their own lifetimes). As a response we propose...

When evaluating well-being distributions in an anonymous (and replication invariant) manner, one faces a dilemma between (i) assigning dictatorship to a single worst-off person, thus succumbing to a tyranny of non-aggregation and (ii) assigning dictatorship to (unboundedly) many better-off...

Are the probable future negative effects of climate change an argument for decreasing the discount rate to promote the interests of future generations? The analysis of the present paper suggests that such stronger intergenerational altruism might undermine future wellbeing if not complemented by...

This paper explores the view that a criterion of intergenerational equity serves to make choices according to ethical intuitions on a domain of relevant technological environments. In line with this view I first calibrate different criteria of intergenerational equity in the AK model of economic...

We investigate the properties of a new equity condition, Hammond Equity for the Future (HEF), capturing the following ethical intuition: A sacrifice by the present generation leading to a uniform gain for all future generations cannot lead to a less desirable utility stream if the present...

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,...