Podcast
Questions and Answers
What does the assumption that 'each generation t consists of a (single) representative agent' imply?
What does the assumption that 'each generation t consists of a (single) representative agent' imply?
Assumption 4 states that time is continuous.
Assumption 4 states that time is continuous.
False
What is meant by feasible consumption streams?
What is meant by feasible consumption streams?
Feasible consumption streams refer to the set of all consumption patterns that can be sustained over time given available resources.
According to Assumption 5, there is a single _________ good.
According to Assumption 5, there is a single _________ good.
Signup and view all the answers
What does t ∈ T ≡ [0, ∞) = N signify in the context of intergenerational models?
What does t ∈ T ≡ [0, ∞) = N signify in the context of intergenerational models?
Signup and view all the answers
What is the main focus of intergenerational fairness?
What is the main focus of intergenerational fairness?
Signup and view all the answers
List one of the key challenges in intergenerational fairness.
List one of the key challenges in intergenerational fairness.
Signup and view all the answers
Match the assumptions to their definitions:
Match the assumptions to their definitions:
Signup and view all the answers
Ranking is inherently situation-specific according to the theories presented.
Ranking is inherently situation-specific according to the theories presented.
Signup and view all the answers
The set of all consumption options for generation t is represented as _________ .
The set of all consumption options for generation t is represented as _________ .
Signup and view all the answers
What two approaches can be combined to account for behavioral responses in intergenerational justice?
What two approaches can be combined to account for behavioral responses in intergenerational justice?
Signup and view all the answers
In the context of intergenerational fairness, a social welfare function is used to assess the overall ____ of a society.
In the context of intergenerational fairness, a social welfare function is used to assess the overall ____ of a society.
Signup and view all the answers
Match the following concepts with their characteristics:
Match the following concepts with their characteristics:
Signup and view all the answers
Which of the following questions illustrates a situation-specific choice?
Which of the following questions illustrates a situation-specific choice?
Signup and view all the answers
Attempts to make rankings situation-specific have been widely accepted without contest.
Attempts to make rankings situation-specific have been widely accepted without contest.
Signup and view all the answers
Identify one common example of a puzzling situation in the context of intergenerational fairness.
Identify one common example of a puzzling situation in the context of intergenerational fairness.
Signup and view all the answers
What is the main problem highlighted by the egalitarian planner regarding resource distribution?
What is the main problem highlighted by the egalitarian planner regarding resource distribution?
Signup and view all the answers
Giving zero consumption to each generation is considered wasteful.
Giving zero consumption to each generation is considered wasteful.
Signup and view all the answers
What does R0 represent in the context of intergenerational fairness?
What does R0 represent in the context of intergenerational fairness?
Signup and view all the answers
The egalitarian planner seeks to share resources _______ and _______ across generations.
The egalitarian planner seeks to share resources _______ and _______ across generations.
Signup and view all the answers
Match the concepts with their descriptions:
Match the concepts with their descriptions:
Signup and view all the answers
Which of the following is NOT a common value judgment in theories of intergenerational justice?
Which of the following is NOT a common value judgment in theories of intergenerational justice?
Signup and view all the answers
Theories of intergenerational justice do not include assumptions about ethical behavior.
Theories of intergenerational justice do not include assumptions about ethical behavior.
Signup and view all the answers
What is the primary focus of theories of intergenerational justice?
What is the primary focus of theories of intergenerational justice?
Signup and view all the answers
Value judgments are considered the _____ of theories of justice.
Value judgments are considered the _____ of theories of justice.
Signup and view all the answers
Match the following value judgments with their descriptions:
Match the following value judgments with their descriptions:
Signup and view all the answers
What does the term 'desiderata' refer to in the context of intergenerational fairness?
What does the term 'desiderata' refer to in the context of intergenerational fairness?
Signup and view all the answers
Puzzling examples in intergenerational fairness are meant to clarify ethical dilemmas.
Puzzling examples in intergenerational fairness are meant to clarify ethical dilemmas.
Signup and view all the answers
Name one approach to distributing resources mentioned in the context of intergenerational fairness.
Name one approach to distributing resources mentioned in the context of intergenerational fairness.
Signup and view all the answers
What are the two closely related approaches discussed in consumer theory?
What are the two closely related approaches discussed in consumer theory?
Signup and view all the answers
It is common for conditions to allow generating choices from preferences and vice versa.
It is common for conditions to allow generating choices from preferences and vice versa.
Signup and view all the answers
What does intergenerational justice primarily concern?
What does intergenerational justice primarily concern?
Signup and view all the answers
The two concepts in consumer theory discussed are the choice-based approach and the ______ approach.
The two concepts in consumer theory discussed are the choice-based approach and the ______ approach.
Signup and view all the answers
Match the terms related to intergenerational justice with their definitions:
Match the terms related to intergenerational justice with their definitions:
Signup and view all the answers
Which of the following is a key topic in theories of intergenerational justice?
Which of the following is a key topic in theories of intergenerational justice?
Signup and view all the answers
In consumer theory, the preference-based approach focuses on the role of individual ______ in making choices.
In consumer theory, the preference-based approach focuses on the role of individual ______ in making choices.
Signup and view all the answers
The connection between choices and preferences is straightforward and well understood.
The connection between choices and preferences is straightforward and well understood.
Signup and view all the answers
Which property of rankings indicates that if alternative c is preferred to c' and c' to c'', then c is preferred to c''?
Which property of rankings indicates that if alternative c is preferred to c' and c' to c'', then c is preferred to c''?
Signup and view all the answers
A complete ranking allows for a situation where neither c nor c' is preferred over the other.
A complete ranking allows for a situation where neither c nor c' is preferred over the other.
Signup and view all the answers
What is a social welfare function represented as W in the context of intergenerational fairness?
What is a social welfare function represented as W in the context of intergenerational fairness?
Signup and view all the answers
The continuity assumption in rankings means that small changes in the alternative do not significantly change the ______.
The continuity assumption in rankings means that small changes in the alternative do not significantly change the ______.
Signup and view all the answers
Match the following properties of rankings with their definitions:
Match the following properties of rankings with their definitions:
Signup and view all the answers
What does the symbol '!' typically represent in the context of preferences?
What does the symbol '!' typically represent in the context of preferences?
Signup and view all the answers
The assumption of transitivity is critical for decision-making in intergenerational justice.
The assumption of transitivity is critical for decision-making in intergenerational justice.
Signup and view all the answers
What does it imply if a ranking is continuous?
What does it imply if a ranking is continuous?
Signup and view all the answers
Study Notes
Intergenerational Fairness Lecture Notes
- Intergenerational fairness is the study of distributing resources fairly across different generations.
- Gosseries' 2008 synopsis is a key text in the field.
- The lecture covers different theories and approaches to the topic.
Simplifying Assumptions
- Assumption 1: Each generation lives in a single time period.
- Assumption 2: Each generation is represented by a single agent.
- Assumption 3: Each generation will exist and live.
- Assumption 4: Time is discrete; a generation lives for one period.
- Assumption 5: There is a single consumption good. ct represents consumption in generation t, and c = (c₀, c₁, c₂,...) represents consumption streams from the first generation forward into the future.
- Assumption 6: Some consumption streams are feasible, others are not. The set "f" represents all feasible consumption streams.
Desiderata
- Identifying and formalizing desired outcomes regarding intergenerational resource allocation..
Ethical Compass
- Identifying and formalizing the goals of policies.
- What is desirable in resource allocation between generations?
Value Judgments
- Value judgments are simple ethical views that are the core of theories of justice.
- Examples include maximizing social welfare for everyone, considering that transferring money from a poorer person to a richer one is morally wrong, and viewing equality as a social good.
Axioms
- Axioms are mathematical statements of value judgments.
- An example axiom is comparing two allocations; if one results in a higher utility for all individuals, that allocation should be preferred.
- Allocation sets (given a particular allocation) must be closed.
Axiomatic Approach
- The axiomatic approach uses axioms to interpret value judgments and their joint implications.
- Some axioms define broader criteria.
- Some axioms define a single criterion.
- Sometimes axioms are incompatible with each other.
Approaches
- Choosing in normative economics identifies the best choice for specific situations.
- Ranking in normative economics ranks choices, and the ranking doesn't change even if the set of possible choices changes.
Choosing vs. Ranking
- Choosing is situation-specific, while ranking is often universal.
- Examples include choices regarding foreign aid distribution or task allocation for a project.
Convergence
- Recent attempts make rankings situation-specific.
- Reducing axioms to simple settings or introducing setting-specific axioms.
- Combining advantages of both criteria — looking for better optima and considering a wider array of values.
Social Welfare Functions
- Formal representation of how society ranks consumption streams.
Ranking Formalism
- A ranking represents social preferences, using a binary relation on possible consumption streams (c, d ε C).
- c ≥ d means that the consumption stream c is as least as desirable as d.
- Rank criteria often include transitivity, completeness, and continuity.
- Social welfare functions can represent rankings.
Puzzling Examples / Examples
- Example 1 (non-renewable resource): How to fairly and efficiently distribute a non-renewable resource across generations? An egalitarian goal meets a problem in feasibility of generating a positive valued consumption for each generation that sums to the initial stock.
- Example 2 (anonymity): An axiom that considers the order of generations as irrelevant. Example applications of the axiom are shown when ranked consumption streams have various orderings of consumption values.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Related Documents
Description
This quiz explores key concepts related to intergenerational models, including assumptions about representative agents and feasible consumption streams. Additionally, it delves into the challenges of intergenerational fairness and the use of social welfare functions. Test your understanding of these critical economic theories and their implications.
