John Quiggin, School of Economics, University of Queensland, Brisbane 4072, Australia (firstname.lastname@example.org).
Equity Between Overlapping Generations
Article first published online: 27 MAR 2012
© 2012 Wiley Periodicals, Inc.
Journal of Public Economic Theory
Volume 14, Issue 2, pages 273–283, March 2012
How to Cite
QUIGGIN, J. (2012), Equity Between Overlapping Generations. Journal of Public Economic Theory, 14: 273–283. doi: 10.1111/j.1467-9779.2011.01540.x
I thank Robert G. Chambers, Simon Grant, Flavio Menezes, Ulrich Schmidt, and Nancy Wallace, along with the participants in the Copenhagen Conference on Risk and Time Preferences for helpful comments and criticism.
- Issue published online: 27 MAR 2012
- Article first published online: 27 MAR 2012
- Received October 15, 2010; Accepted July 12, 2011.
This note is a demonstration that, in the presence of overlapping generations and under standard conditions for a social welfare ordering (Pareto optimality, transitivity, and independence), the only ordering consistent with utilitarianism for all people currently alive at any given point in time is one based on weighting all people equally, regardless of their date of birth. In particular, this implies that, under reasonable conditions, the pure rate of social time preference is zero.