The Pareto principle of optimal inequality Antoine BOMMIER

The Pareto Principle of Optimal Inequality

The Pareto principle is often viewed as a mild requirement compatible with a variety of value judgements. In particular, it is generally thought that it can accommodate different degress of inequality aversion. We show that this is generally not true in time consistent intertemporal models where some uncertainty prevails.

Patient, Perfectly Pareto Preferences: Programming and the Precautionary Principle

Society is an aggregate of present and future generations. We study stochastic inter-generational programming problems in which similar treatment of generations in similar situations is possible. For such problems, all patient, inequality averse societal welfare functions that are perfectly Pareto responsive have the same optimal policies. When the outcomes of irreversible decisions are partial...

Overlapping Generations Models with Realistic Demography Statics and Dynamics

Comments Rotten Parents and Child Labor

Baland and Robinson (2000) investigate the conditions under which decisions by parents about their own children’s work are inefficient. Using a simple two-period model with altruistically linked family members, they show that child labor decisions are efficient when credit markets are perfect and intergenerational altruistic transfers are nonzero. Moreover, they show that when the level of chil...

A Neural Network Method Based on Mittag-Leffler Function for Solving a Class of Fractional Optimal Control Problems

In this paper, a computational intelligence method is used for the solution of fractional optimal control problems (FOCP)'s with equality and inequality constraints. According to the Ponteryagin minimum principle (PMP) for FOCP with fractional derivative in the Riemann- Liouville sense and by constructing a suitable error function, we define an unconstrained minimization problem. In the optimiz...