Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
956861 | Journal of Economic Theory | 2015 | 15 Pages |
Abstract
This paper focuses on welfare properties of equilibria in exchange economies with time-dependent preferences. We reintroduce the notion of time-consistent overall Pareto efficiency proposed by Herings and Rohde (2006) and show that, whenever all agents in the economy are sophisticated, any equilibrium allocation is efficient in this sense. Therefore, we present a version of the First Fundamental Welfare Theorem for this class of economies.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Paweł Dziewulski,