Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/63021 
Year of Publication: 
2006
Series/Report no.: 
Memorandum No. 2006,17
Publisher: 
University of Oslo, Department of Economics, Oslo
Abstract: 
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, Pigou-Dalton, and resource monotonicity. We show that Suppes-Sen and Pigou-Dalton imply that the consumption and inheritance functions are monotone with respect to time—thus justifying sustainability—while resource monotonicity implies that the consumption and inheritance functions are monotone with respect to the resource. Examples illustrate the characterization results.
Subjects: 
Intergenerational resource allocation
infinite-horizon choice
JEL: 
D63
D71
Document Type: 
Working Paper

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