Efficiency of competitive equilibria in economies with time-dependent preferences

Dziewulski, Pawel (2015) Efficiency of competitive equilibria in economies with time-dependent preferences. Journal of Economic Theory, 159 (Part A). 311 - 325. ISSN 0022-0531

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Abstract

This paper focuses on welfare properties of equilibria in exchange economies with time-dependent preferences. We reintroduce the notion of time-consistent overall Pareto efficiency proposed by Herings and Rohde (2006) and show that, whenever all agents in the economy are sophisticated, any equilibrium allocation is efficient in this sense. Therefore, we present a version of the First Fundamental Welfare Theorem for this class of economies.

Item Type: Article
Keywords: Time-dependent preferences, Competitive equilibrium, First Fundamental Welfare Theorem, Hyperbolic discounting
Schools and Departments: School of Business, Management and Economics > Economics
Related URLs:
Depositing User: Pawel Dziewulski
Date Deposited: 11 Sep 2018 15:14
Last Modified: 11 Sep 2018 15:14
URI: http://srodev.sussex.ac.uk/id/eprint/78643

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