Changes in Social Welfare in an Intertemporal Economy

14 Pages Posted: 12 Sep 2011

See all articles by Elvio Accinelli

Elvio Accinelli

Facultad de Economía de la Universidad Autónoma de San Luís Potosí

Joss Erick Sánchez

affiliation not provided to SSRN

Leobardo Plata

Universidad Autónoma de San Luis Potosí, México

Date Written: September 11, 2011

Abstract

General Equilibrium Theory (GE) scrutinizes the ability of markets to achieve efficient allocation of resources. Our main purpose is, in the framework to the GE to analyze, the possibility of design a mechanism enabling agents to make independent decisions compatible with social welfare. More precisely, we address the problem of the possibility of decentralization mechanism to sustain efficiency and social welfare at the same time. Specifically, introducing a social utility function, we argue on the possibility of improving the social welfare transferring resources between periods of the economy. This mechanism introduces a Rawlsian solution improving the welfare of the individuals worst positioned.

Keywords: Welfare, efficiency, decentralization

JEL Classification: D6, D7

Suggested Citation

Accinelli, Elvio and Sánchez, Joss Erick and Plata, Leobardo, Changes in Social Welfare in an Intertemporal Economy (September 11, 2011). Available at SSRN: https://ssrn.com/abstract=1925605 or http://dx.doi.org/10.2139/ssrn.1925605

Elvio Accinelli (Contact Author)

Facultad de Economía de la Universidad Autónoma de San Luís Potosí ( email )

Av. Pintores S/N
San Luis Potosí, San Luis Potosí 78263
Mexico
52444 8131238/120 (Phone)
52444 8131238 (Fax)

Joss Erick Sánchez

affiliation not provided to SSRN ( email )

Leobardo Plata

Universidad Autónoma de San Luis Potosí, México ( email )

Mexico

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
43
Abstract Views
406
PlumX Metrics