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Evaluations of Infinite Utility Streams: P areto Efficient and Egalitarian Axiomatics
Author(s) -
Alcantud José Carlos R.,
GarcíaSanz María D.
Publication year - 2013
Publication title -
metroeconomica
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.256
H-Index - 29
eISSN - 1467-999X
pISSN - 0026-1386
DOI - 10.1111/meca.12012
Subject(s) - axiom , pareto principle , equity (law) , economics , mathematical economics , microeconomics , pareto optimal , intergenerational equity , social welfare function , social welfare , linkage (software) , welfare , streams , social choice theory , computer science , mathematical optimization , multi objective optimization , mathematics , operations management , chemistry , ecology , computer network , biology , biochemistry , geometry , political science , market economy , gene , sustainability , law
This investigation focuses on the aggregation of infinite utility streams by social welfare functions. We analyze the possibility of combining Pareto‐efficiency and Hammond Equity principles when the feasible utilities for each generation are [0, 1] and the natural numbers. In the latter case, the Hammond Equity ethics can be combined with non‐trivial specifications of the Pareto postulate, even through anonymous social welfare functions. As a consequence, any evaluation of infinite utility streams that verifies a mild specification of the Paretian axiom must exert some interference on the affairs of particular generations.