Efficiency in the cake-eating problem with quasi-geometric discounting
| Autor: | Juan Carlos Chavez-Martin del Campo |
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| Rok vydání: | 2007 |
| Předmět: | |
| Zdroj: | Economics Bulletin. 4(43):1-8 |
| Popis: | This paper shows that any equilibrium allocation in the cake-eating problem with quasi-geometric discounting is not Pareto efficient. However, efficiency can be established by introducing a planner who controls the initial endowment and makes transfers over time. It is shown than any Pareto efficient allocation can be supported by a perfect equilibrium with transfers. |
| Databáze: | OpenAIRE |
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