The limit of discounted utilitarianism

Arbeitspapier

This paper presents an infinite-horizon version of intergenerational utilitarianism that is both satisfactorily complete and consistent. By studying discounted utilitarianism as the discount factor tends to one, we obtain a welfare criterion - limit-discounted utilitarianism - that combines efficiency and the equal treatment of generations with analytical tractability and a high degree of comparability. We show that limit-discounted utilitarianism satisfies a number of consistency properties; in particular, it provides (i) an intuitive link between preferences over infinite-horizon streams and large, but finite-horizon truncations, and (ii) a complete view of the consequences of delaying streams with well-defined finite averages. The latter is formulated through a principle of compensation. Through this compensation principle, limit-discounted utilitarianism gives a coherent view on the consequences of delaying welfare which is compatible with stationarity. Limit-discounted utilitarianism is characterized on a large domain of infinite-horizon utility streams.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: SSE/EFI Working Paper Series in Economics and Finance ; No. 748

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Equity, Justice, Inequality, and Other Normative Criteria and Measurement ; Analysis of Collective Decision-Making: General ; Micro-Based Behavioral Economics: General‡
• Thema: intergenerational equity ; aggregating infinite utility streams ; ethical social welfare relations

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Jonsson, Adam ; Voorneveld, Mark
• Ereignis: Veröffentlichung
• (wer): Stockholm School of Economics, The Economic Research Institute (EFI)
• (wo): Stockholm
• (wann): 2014

Weitere Informationen

• Handle: http://hdl.handle.net/10419/122141
• Letzte Aktualisierung: 20.09.2024, 08:23 MESZ