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
URL of the HAL notice
Version
- 1