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A THEORY OF INTERGENERATIONAL CLUBS
Author(s) -
SANDLER TODD
Publication year - 1982
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1982.tb01151.x
Subject(s) - economics , futures studies , pareto principle , microeconomics , incentive , depreciation (economics) , arrow , pareto efficiency , government (linguistics) , pareto optimal , set (abstract data type) , operations management , artificial intelligence , financial capital , computer science , programming language , profit (economics) , linguistics , philosophy , capital formation
Intertemporal Pareto‐efficient conditions for provision and maintenance of the shared good, tolls, membership size, and financing are presented for intergenerational clubs. An optimal membership span is also determined for nonlifetime members. These Pareto‐efficient conditions account for atemporal crowding, intertemporal depreciation due to utilization, and the sequence of members. Adequate incentives exist for privately owned clubs to act with foresight, but do not necessarily exist for government‐owned clubs. Nevertheless, privately owned clubs must be operated by a firm rather than the members if free‐rider problems regarding maintenance are to be avoided.