A Note on the Characterization of Optimal Allocations in OLG Models with Multiple Goods

Journal article: We consider a pure exchange overlapping generations economy with a varying number of commodities and consumers per period having possibly non-complete non transitive preferences. We provide a geometric and direct proof of the Balasko-Shell characterization of Pareto optimal allocations. As a by-product, we compute an explicit Pareto improving transfer when the criterion is not satisfied, which is minimal for some suitable distance.

Author(s)

Jean-Marc Bonnisseau, Lalaina Rakotonindrainy

Journal
  • Set-Valued and Variational Analysis
Date of publication
  • 2015
Keywords
  • Overlapping generations model
  • Non complete non transitive preferences
  • Normal cone
  • Equilibrium
  • Pareto optimality
Pages
  • 10.1007/s11228-015-0342-7
Version
  • 1