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• W2594332089 abstract "We propose a new criterion reflecting both the concern for rights and the concern for welfare in the evaluation of economic development paths. The concern for rights is captured by a pre-ordering over combinations of thresholds corresponding to floors or ceilings on various quantitative indicators. The resulting constraints on actions and on levels of state variables are interpreted as minimal rights to be guaranteed to all generations, for intergenerational equity purposes. The levels of these rights are endogenously chosen, accounting for the “cost in terms of welfare” of granting them. Such a criterion could embody the idea of sustainable development. We provide an axiomatization of such a criterion and characterize the tension between rights and welfare in a general economic framework. We apply the criterion to the standard Dasgupta-Heal-Solow model of resource extraction and capital accumulation. We show that if the weight given to rights in the criterion is sufficiently high, the optimal solution is on the threshold possibility frontier. The development path is then “driven” by the rights. Specifically, if a minimal consumption is considered as a right, constant consumption can be optimal even with a positive utility discount rate. In this case, the shadow value of the right plays an important role in the determination of the rate of discount to be applied to social investment projects. Nous proposons un nouveau critere refletant a la fois le souci des droits et le souci du bien-etre dans l’evaluation des sentiers de developpement economique. La preoccupation pour les droits est saisie par une structure de preferences envers des combinaisons de seuils de divers indicateurs quantitatifs. Les contraintes sont interpretees comme des droits minimaux a garantir a toutes les generations. Les niveaux de ces droits sont choisis de facon endogene, en tenant compte du cout en termes de bien-etre. Un tel critere pourrait incarner l’idee du developpement durable. Nous caracterisons la tension entre droits et bien-etre dans un cadre economique general. Nous appliquons le critere au modele de Dasgupta-Heal-Solow. Nous montrons que si le poids accorde aux droits dans le critere est suffisamment eleve, la solution optimale se situe sur la frontiere des seuils. Le chemin de developpement est alors « pilote » par les droits. Plus precisement, si une consommation minimale est consideree comme un droit, la consommation constante peut etre optimale meme avec un taux d’actualisation positif. Dans ce cas, la valeur implicite du droit joue un role important dans la determination du taux d’actualisation a appliquer aux projets d’investissement social." @default.
• W2594332089 created "2017-03-16" @default.
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• W2594332089 date "2016-12-21" @default.
• W2594332089 modified "2023-09-27" @default.
• W2594332089 title "How to Take Rights Seriously: A New Approach to the Intertemporal Evaluation of Social Alternatives" @default.
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