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The Mixed Bentham-Rawls Intertemporal Choice Criterion and Rawls’ Just Savings Principle

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Listed:
  • Charles Figuieres
  • Ngo Van Long
  • Mabel Tidball

Abstract

This paper provides general theorems about the control that maximizes the mixed Bentham-Rawls (MBR) criterion for intergenerational justice, which was introduced in Alvarez-Cuadrado and Long (2009). We establish sufficient concavity conditions for a candidate trajectory to be optimal and unique. We show that the state variable is monotonic under rather weak conditions. We also prove that inequality among generations, captured by the gap between the poorest and the richest generations, is lower when optimization is performed under the MBR criterion rather than under the discounted utilitarian criterion. A quadratic example is also used to perform comparative static exercices: it turns out, in particular, that the larger the weight attributed to the maximin part of the MBR criterion, the better-off the less fortunate generations. All those properties are discussed and compared with those of the discounted utilitarian (DU, Koopmans 1960) and the rank-discounted utilitarian (RDU, Zuber and Asheim, 2012) criterions. We contend they are in line with some aspects of the rawlsian just savings principle.

Suggested Citation

  • Charles Figuieres & Ngo Van Long & Mabel Tidball, 2016. "The Mixed Bentham-Rawls Intertemporal Choice Criterion and Rawls’ Just Savings Principle," CIRANO Working Papers 2016s-49, CIRANO.
    • Handle: RePEc:cir:cirwor:2016s-49
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    File URL: https://cirano.qc.ca/files/publications/2016s-49.pdf
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    References listed on IDEAS

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    1. Alvarez-Cuadrado, Francisco & Van Long, Ngo, 2009. "A mixed Bentham-Rawls criterion for intergenerational equity: Theory and implications," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 154-168, September.
    2. Hartl, Richard F., 1987. "A simple proof of the monotonicity of the state trajectories in autonomous control problems," Journal of Economic Theory, Elsevier, vol. 41(1), pages 211-215, February.
    3. John Roemer & Kotaro Suzumura (ed.), 2007. "Intergenerational Equity and Sustainability," International Economic Association Series, Palgrave Macmillan, number 978-0-230-23676-9, June.
    4. Graciela Chichilnisky, 1996. "An axiomatic approach to sustainable development," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(2), pages 231-257, April.
    5. Ngo Van Long, 1979. "Two Theorems on Generalized Diminishing Returns and their Applications to Economic Analysis," The Economic Record, The Economic Society of Australia, vol. 55(1), pages 58-63, March.
    6. Geir B. Asheim, 1988. "Rawlsian Intergenerational Justice as a Markov-Perfect Equilibrium in a Resource Technology," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(3), pages 469-483.
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    Citations

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    Cited by:

    1. Ngo Long & Vincent Martinet, 2018. "Combining rights and welfarism: a new approach to intertemporal evaluation of social alternatives," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 50(1), pages 35-64, January.

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    More about this item

    Keywords

    intergenerational equity; just savings principle;

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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