Two-Sided Altruism, Lindahl Equilibrium, and Pareto Optimality in Overlapping Generations Models
10 Pages Posted: 6 Nov 2005
Abstract
This paper extends the Samuelsonian overlapping generations general equilibrium framework to encompass a variety of altruistic preferences by recasting it into a Lindahl equilibrium framework. The First and the Second Welfare theorems hold for Lindahl equilibrium with respect to the Malinvaud optimality criterion but not with respect to the Pareto optimality criterion. A complete characterization of Pareto optimal allocations is provided using the Lindahl equilibrium prices.
Note: This is a description of the paper and not the actual abstract.
Keywords: Altruism, Lindahl Equilibrium, Pareto Optimality, Overlapping Generations
JEL Classification: D51, D62, D64, C62
Suggested Citation: Suggested Citation