Aggregating infinite utility streams with inter-generational equity

Descripción

It has been known that, in aggregating infinite utility streams, there does not exist any social welfare function, which satisfies the axioms of Pareto, inter-generational equity and continuity. We show that the impossibility result persists even without imposing the continuity axiom. Hence, the problem of accommodating inter-generational equity is more obstinate than previously supposed. The paper goes on to explore the scope for obtaining possibility results by weakening the Pareto axiom and placing restrictions on the domain of utilities. Keywords: aggregating utility, social welfare function, inter-generational equity, Pareto. JEL Classification: D00, D70, D90.