The purpose of this paper is to respond to criticism of the previous representations of Sandler and Smith of the numeraire in an intertemporal analysis of Pareto efficiency conditions. This reexamination suggests that the role of the numeraire is shown to be less clear-cut than Cabe implies. Moreover, the analysis indicates that the earlier conclusions are not crucially dependent on the numeraire assumption.
ASJC Scopus subject areas
- Economics and Econometrics
- Management, Monitoring, Policy and Law