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Maximin growth paths with recursive preferences: A complete characterization

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Abstract

This paper examines the growth paths that maximize the utility of the worst off generation for an economy where preferences are stationary and can be represented by a recursive utility function. The analysis focuses on the case where second period utility is an inferior good. It is shown that in such a case the maximin growth paths are time inconsistent. A possible solution to the time inconsistency problem is examined.

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  1. Alvaro Rodriguez

    Present address: Department of Economics, University of Miami, P. O. Box 248126, 33124-6550, Coral Gables, FL, USA

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    1. Alvaro Rodriguez
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    Rodriguez, A. Maximin growth paths with recursive preferences: A complete characterization. Journal of Economics Zeitschrift für Nationalökonomie 52, 233–251 (1990). https://doi.org/10.1007/BF01227523

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    • DOI: https://doi.org/10.1007/BF01227523

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