Resource title

Intra-generational externalities and inter-generational transfers

Resource image

image for OpenScout resource :: Intra-generational externalities and inter-generational transfers

Resource description

In an environment with asymmetric information the implementation of a first-best efficient Clarke-Groves-Vickrey (D?Aspremont-Gérard-Varet) mechanism may not be feasible if it has to be self-financing. By using intergenerational transfers, the arising budget deficit can generally be covered in every generation if the growth rate of the economy is positive. This result yields an alternative explanation for the existence of pay-as-you-go financed transfer mechanisms.

Resource author

Martin Kolmar, Volker Meier

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18801

Resource license

Adapt according to the presented license agreement and reference the original author.