Social objectives in general equilibrium

Shiran Rachmilevitch

doi:10.1016/j.econlet.2016.09.033

Social objectives in general equilibrium

Shiran Rachmilevitch

Department of Economics

Research output: Contribution to journal › Article › peer-review

Abstract

I consider an exchange economy in which each agent's preferences are given by U_i=u_i+θF, where u_i is a standard utility function, F is a social objective function and θ is the weight F receives. Both F and θ are common to all individuals. I show that F's equilibrium value may be a decreasing function of θ. I also show that if F is a social welfare function whose arguments are the u_i’s, then the economy's equilibria are independent of θ.

Original language	English
Pages (from-to)	99-102
Number of pages	4
Journal	Economics Letters
Volume	148
DOIs	https://doi.org/10.1016/j.econlet.2016.09.033
State	Published - 1 Nov 2016

Bibliographical note

Publisher Copyright:
© 2016

Keywords

Consumption externalities
General equilibrium
Other-regarding preferences
Social objectives

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/j.econlet.2016.09.033

Cite this

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Social objectives in general equilibrium

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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