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Axiomatic analysis of intergenerational social preferences over infinite streams of well-being faces the following dilemma. Equal treatment of generations combined with sensitivity for the interests of each generation rules out explicitly defined preferences that can rank any pair of infinite well-being streams. Hence, either intergenerational social preferences must be incomplete or equal treatment and sensitivity must be compromised. This critical review of axiomatic analyses of preferences over infinite streams evaluates different kinds of intergenerational social preferences by comparing their axiomatic basis as well as their performance in simple present-future conflicts. The scope for application is discussed, using real-world intergenerational conflicts (such as global warming) as a backdrop.intergenerational preferences, axiomatic analysis, equal treatment

The discounted utilitarian criterion for infinite horizon social choice has been criticized for treating generations unequally. We propose an extended rank-discounted utilitarian (ERDU) criterion instead. The criterion amounts to discounted utilitarianism on non-decreasing streams, but it treats all generations impartially: discounting becomes the mere expression of intergenerational inequality aversion. We show that more inequality averse ERDU societies have higher social discount rates when future generations are better off. We apply the ERDU approach in two benchmark economic growth models and prove that it promotes sustainable policies that maximize discounted utilitarian welfare.

In the Dasgupta-Heal-Solow-Stiglitz model of capital accumulation and resource depletion we show the following equivalence: If an efficient path has constant (gross and net of population growth) savings rates, then population growth must be quasi-arithmetic and the path is a maximin or a classical utilitarian optimum. Conversely, if a path is optimal according to maximin or classical utilitarianism (with constant elasticity of marginal utility) under quasiarithmetic population growth, then the (gross and net of population growth) savings rates converge asymptotically to constants. JEL Code: Q10, Q32.

Abstract. We show that instantaneous increases in real NNP over time are an accurate indicator of true dynamic welfare improvements.The framework of the paper is the standard multisector optimal growth model. The result highlights a connection between the theory of green (or comprehensive) national income accounting and the theory of real price indices.

Abstract. We describe a new approach to the problem of resolving distributional conflicts between an infinite and countable number of generations. We impose conditions on the social preferences that capture the following idea: If indifference or preference holds between truncated paths for infinitely many truncating times, then indifference or preference holds also between the untruncated infinite paths. In this framework we show (1) how such conditions illustrate the problem of combining Strong Pareto and impartiality in an intergenerational setting, and (2) how equity conditions well-known from the finite setting can be used to characterize different versions of leximin and utilitarianism.Journal of Economic Literature Classification Numbers: D63, Q01.

Abstract. We shed light on the Hartwick rule for capital accumulation and resource depletion by providing semantic clarifications and investigating the implications and relevance of this rule. We extend earlier results by establishing that the Hartwick rule does not indicate sustainability and does not require substitutability between man-made and natural capital. We use a new class of simple counterexamples (i) to obtain the novel finding that a negative value of net investments need not entail that utility is unsustainable, and (ii) to point out deficiencies in the literature.