Efficiency with Endogenous Population Growth / Mikhail Golosov, Larry E. Jones, Michele Tertilt.

Format:

Book

Author/Creator:

Golosov, Mikhail.

Contributor:

National Bureau of Economic Research.

Jones, Larry E.

Tertilt, Michele.

Series:

Working Paper Series (National Bureau of Economic Research) no. w10231.

NBER working paper series no. w10231

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2004.

Summary:

In this paper, we generalize the notion of Pareto-efficiency to make it applicable to environments with endogenous populations. Two efficiency concepts are proposed, P-efficiency and A-efficiency. The two concepts differ in how they treat people who are not born. We show how these concepts relate to the notion of Pareto-efficiency when fertility is exogenous. We then prove versions of the first welfare theorem assuming that decision making is efficient within the dynasty. Finally, we give two sets of sufficient conditions for non-cooperative equilibria of family decision problems to be efficient. These include the Barro and Becker model as a special case.

Notes:

Print version record

January 2004.