Intergenerational Equity and Sustainability (International Economic Association Series)

List of Figures 1.1 Steady-state level of pension contribution 2.1 Trade-off between NEOC and Pareto efficiency 2.2 Piecewise-linear utility function 2.3 Logical relations among equity concepts 3.1 KNH balance sheet before reforms 3.2 Per-capita income by age in Japan 3.3 Drop-out from SS Pensions (non-employees) 3.4 KNH balance sheet: after reforms 3.5 KNH balance sheet: alternative reforms 3.6 NDC plus GP 10.1 Illustration of the transfer axiom 10.2 Illustration of the equality axiom 14.3.1 Overlapping generations with exogenous growth 14.3.2 Fraction of output for seniors' consumption in the various solutions 14.3.3 Paths of standards of living in the various solutions 14.4.1 Diamond's (1965) model 14.4.2 The consumption-investment conflict in Diamond's model 14.4.3 The consumption-investment frontier when investment is productive within the period 14.4.4 Progress at the leximin of the endogenous growth model with same-period productive investment 14.5.1 Two types of violation of the sufficientarianist constraint 14.5.1 Overlapping generations in the Roemer-Veneziani model 16.1 Past and future time paths vii Walter Bossert John Roemer (co-chair) Joaquim Silvestre Kotaro Suzumura (co-chair) Koichi Tadenuma. To cover a wide spectrum of issues related to intergenerational equity and sustainability, the Committee invited 25 highly-qualified economists and philosophers to discuss 17 papers over three full days. The IEA and the Chairman express sincere gratitude to all who contributed, as committee members, authors and discussants, without whose collaboration this book would not have been fruitfully completed. Front Matter....Pages i-xxii Front Matter....Pages 1-1 Pension Contributions and Capital Accumulation....Pages 3-19 Equity and Efficiency in Overlapping Generations Economies....Pages 20-35 Social Security Pensions and Intergenerational Equity: The Japanese Case....Pages 36-52 Front Matter....Pages 53-53 A New Equity Condition for Infinite Utility Streams and the Possibility of being Paretian....Pages 55-68 Possibility Theorems for Equitably Aggregating Infinite Utility Streams....Pages 69-84 On the Existence of Paretian Social Welfare Quasi-Orderings for Infinite Utility Streams with Extended Anonymity....Pages 85-99 Pareto Principle and Intergenerational Equity: Immediate Impatience, Universal Indifference and Impossibility....Pages 100-109 Front Matter....Pages 111-111 Formal Welfarism and Intergenerational Equity....Pages 113-130 Intertemporal Social Evaluation....Pages 131-154 Intergenerational Fairness....Pages 155-175 Person-Affecting Paretian Egalitarianism with Variable Population Size....Pages 176-200 Front Matter....Pages 201-201 Intergenerational Justice and Sustainability Under the Leximin Ethic....Pages 203-227 Intergenerational Justice, International Relations and Sustainability....Pages 228-251 Intergenerational Equity and Human Development....Pages 252-287 Front Matter....Pages 289-289 Toward a Theory of a Just Savings Principle....Pages 291-319 Normative Approaches to the Issues of Global Warming: Responsibility and Compensation....Pages 320-336 Fundamental Incompatibility between Economic Efficiency, Intergenerational Equity and Sustainability....Pages 337-357 Back Matter....Pages 358-368 This book addresses distributive justice across generations and includes original theories from distinguished economists on intergenerational equity, efficiency and rationality, which discuss policies on social security, pensions, and environmental degradation, as examples of policies of the present generation which impact upon future generations. This book addresses the issues of intergenerational equity, intertemporal efficiency, and collective rationality of social decision-making. How should the welfare of future generations be treated vis-a-vis the welfare of present generation? How should we design and implement social security reforms? How can we formalize the notion of sustainable economic development, and what are the conditions that warrant the sustainability of development path? In the context of the problem of global warming, where a large part of those who are responsible for causing the problem do not exist anymore, and a large part of those who will be most severely affected by the problem do not yet exist, why and how should the present generation assume responsibility to take actions against this problem? Contributions come from distinguished economists who specialize in this area, and are tied by the common thread of taking a welfare-theoretic approach to the problem