Justifying social discounting the rank-discounted utilitarian approach
The discounted utilitarian criterion for infinite horizon social choice has been criticized for treating generations unequally. We propose an extended rank-discounted utilitarian (ERDU) criterion instead. The criterion amounts to discounted utilitarianism on non-decreasing streams, but it treats all...
Gespeichert in:
1. Verfasser: | |
---|---|
Weitere Verfasser: | |
Format: | UnknownFormat |
Sprache: | eng |
Veröffentlicht: |
Munich
CESifo
2010
|
Schriftenreihe: | CESifo working papers
3192 : Category 2, Public choice |
Schlagworte: | |
Online Zugang: | Volltext |
Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
Zusammenfassung: | The discounted utilitarian criterion for infinite horizon social choice has been criticized for treating generations unequally. We propose an extended rank-discounted utilitarian (ERDU) criterion instead. The criterion amounts to discounted utilitarianism on non-decreasing streams, but it treats all generations impartially: discounting becomes the mere expression of intergenerational inequality aversion. We show that more inequality averse ERDU societies have higher social discount rates when future generations are better-off. We apply the ERDU approach in two benchmark economic growth models and prove that it promotes sustainable policies that maximize discounted utilitarian welfare. |
---|---|
Beschreibung: | Literaturangaben. - Zusätzliches Online-Angebot unter www.SSRN.com, www.RePEc.org und www.CESifo-group.org/wp |
Beschreibung: | 35 S. 21 cm |