Intertemporal and intergenerational pareto efficiency revisited

Todd Sandler, V. Kerry Smith

Research output: Contribution to journalArticle

11 Scopus citations

Abstract

This paper demonstrates that Bishop's formulation deviates in a fundamental way from our model and, in so doing, Bishop has assumed the problem away. Bishop utilizes a utility function that is too general to discriminate the time pattern of consumption from that of production. Hence, the intertemporal nature of the goods that we analyzed cannot be captured by Bishop's representation. Furthermore, we show that current benefit cost methods that discount the benefit stream of a public asset are Pareto intertemporally inefficient.

Original languageEnglish (US)
Pages (from-to)252-257
Number of pages6
JournalJournal of Environmental Economics and Management
Volume4
Issue number3
DOIs
StatePublished - Sep 1977

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ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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