Resource title

Sustainability and discounted utilitarianism in models of economic growth

Resource image

image for OpenScout resource :: Sustainability and discounted utilitarianism in models of economic growth

Resource description

Discounted utilitarianism treats generations unequally and leads to seemingly unappealing consequences in some models of economic growth. Instead, this paper presents and applies sustainable discounted utilitarianism (SDU). SDU respects the interests of future generations and resolves intergenerational conflicts by imposing on discounted utilitarianism that the evaluation be insensitive to the interests of the present generation if the present is better off than the future. An SDU social welfare function always exists. We provide a convenient sufficient condition to identify SDU optima and apply SDU to two well-known models of economic growth. We also investigate the axiomatic basis for SDU.

Resource author

Geir B. Asheim, Tapan Mitra

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/26566

Resource license

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