Allais-Anonymity As An Alternative To The Discounted-Sum Criterion In The Calculus Of Optimal Growth II: Pareto Optimality And Some Economic Interpretations

This paper studies the Pareto-optimality of the consensual optimum established in "Allais-anonymity as an alternative to the discounted-sum criterion I: consensual optimality" ([Mabrouk 2006a]). For that, a Pareto-optimality criterion is set up by the application of the generalized Karush, Kuhn and Tucker theorem and thanks to the decomposition of lp??∗. That makes it possible to find sufficient conditions so that a bequest-rule path is Pareto-optimal. Through an example, it is then shown that the golden rule must be checked to achieve Allais-anonymous optimality.