Fair Allocations in an Overlapping Generations Economy

22 Pages Posted: 10 Sep 2013 Last revised: 7 Dec 2018

See all articles by Ram Sewak Dubey

Ram Sewak Dubey

Montclair State University - The Feliciano School of Business, Department of Economics

Francesco Ruscitti

John Cabot University, Department of Economics and Social Sciences

Date Written: December 6, 2018

Abstract

This paper investigates fair (i.e., envy free and efficient) allocations in an overlapping generations economy without production and with two - period lived agents. We show that there exists a conflict between no-envy and efficiency when all generations have identical preferences. This conflict crucially depends on the size of the given young age consumption of the initial old generation relative to the young age consumption at the golden-rule. We then show that there exist non-stationary preferences for which such a conflict does not arise, regardless of the young age consumption of the initial old generation.

Keywords: Efficiency, No-Envy, Fair allocations, Non-stationary preferences

JEL Classification: D61, D63, D71

Suggested Citation

Dubey, Ram Sewak and Ruscitti, Francesco, Fair Allocations in an Overlapping Generations Economy (December 6, 2018). Available at SSRN: https://ssrn.com/abstract=2323256 or http://dx.doi.org/10.2139/ssrn.2323256

Ram Sewak Dubey (Contact Author)

Montclair State University - The Feliciano School of Business, Department of Economics ( email )

538, Feliciano School of Business,
1 Normal Ave
Upper Montclair, NJ 07043
United States
973-655-7778 (Phone)
973-655-7629 (Fax)

HOME PAGE: http://www.montclair.edu/~dubeyr

Francesco Ruscitti

John Cabot University, Department of Economics and Social Sciences ( email )

Via della Lungara 233
Rome, 00165
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
42
Abstract Views
482
PlumX Metrics