Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/70451
Authors: 
Dubey, Ram Sewak
Mitra, Tapan
Year of Publication: 
2010
Series/Report no.: 
CAE Working Paper 10-06
Abstract: 
This paper investigates the nature of paths in the standard neoclassical aggregative model of economic growth that are maximal according to the Suppes-Sen grading principle. This is accomplished by relating such paths to paths which are utilitarian maximal when an increasing (but not necessarily concave) utility function evaluates each period's consumption. An example is presented in which an explicit form of a consumption function is described, which generates only Suppes-Sen maximal paths. This consumption function is shown to generate consumption cycles, and violate the Pigou-Dalton transfer principle.
Subjects: 
Suppes-Sen Grading Principle
Utilitarian Maximality
Non-concave utility function
Consumption Cycles
Pigou-Dalton Transfer Principle
JEL: 
D60
D70
D90
Document Type: 
Working Paper

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