EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/46516
  
Title:Justifying social discounting: The rank-discounted utilitarian approach PDF Logo
Authors:Zuber, Stéphane
Asheim, Geir B.
Issue Date:2010
Series/Report no.:CESifo working paper: Public Choice 3192
Abstract:The discounted utilitarian criterion for infinite horizon social choice has been criticized for treating generations unequally. We propose an extended rank-discounted utilitarian (ERDU) criterion instead. The criterion amounts to discounted utilitarianism on non-decreasing streams, but it treats all generations impartially: discounting becomes the mere expression of intergenerational inequality aversion. We show that more inequality averse ERDU societies have higher social discount rates when future generations are better-off. We apply the ERDU approach in two benchmark economic growth models and prove that it promotes sustainable policies that maximize discounted utilitarian welfare.
Subjects:intergenerational equity
social discounting
discounted utilitarianism
sustainability
JEL:D63
H43
Q56
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
639007074.pdf391.68 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/46516

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.