This paper employs a three-period-overlapping-generations model to discuss intergenerational (in-)efficiency of a PAYG system when labor supply is endogenous. Four main results will be derived. First, ...

The Pareto principle is often in conflict with the equity criteria in construction of social preferences: there exist two allocations χ and y such that χ Pareto dominates y, but y is an equitable ...

The single most important proposition in economic theory, first stated by Adam Smith, is that competitive markets do a good job allocating resources. Vilfredo Pareto’s later formulation was more ...