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A definition of a utilitarian social welfare relation (SWR) for infinite utility streams is proposed. Such a relation is characterized in terms of the Pareto, Anonymity and Partial Unit Comparability Axioms. The merits of the utilitarian SWR, relative to the more restrictive SWR induced by the overtaking criterion, are examined. © 2006 Elsevier Inc. All(More)
This paper provides an easily verifiable sufficient condition for topological chaos for unimodal maps which can be satisfied when the well-known Li Yorke condition is not satisfied. It then shows how this result can be applied to a model of endogenous growth with externalities to establish the existence of chaotic equilibrium growth paths in that framework.(More)
In the Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion we show the following equivalence: If an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal(More)
This paper is concerned with the relationship between the discount rate and the nature of long-run behavior in dynamic optimization models. The theory is developed under two conditions. The first is history independence, which rules out multiple limit sets. The second is a condition that avoids the reversion to a stable steady state, as the discount factor(More)
We show how information acquisition costs can be identified using observable choice data. Identifying information costs from behavior is especially relevant when these costs depend on factors—such as time, effort, and cognitive resources—that are difficult to observe directly, as in models of rational inattention. Using willingness-to-pay data for(More)
Discounted utilitarianism treats generations unequally and leads to seemingly unappealing consequences in some models of economic growth. Instead, this paper presents and applies sustainable discounted utilitarianism (SDU). SDU respects the interests of future generations and resolves intergenerational conflicts by imposing on discounted utilitarianism that(More)
We consider an optimally managed renewable resource with stochastic non-concave growth function. We characterize the conditions under which the optimal policy leads to global extinction, global conservation and the existence of a safe standard of conservation. Our conditions are specified in terms of the economic and ecological primitives of the model: the(More)