Guardado en:
Detalles Bibliográficos
Autores principales: Nakano, Satoshi, Nishimura, Kazuhiko
Formato: Preprint
Publicado: 2024
Materias:
Acceso en línea:https://arxiv.org/abs/2409.15978
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
_version_ 1866918348535627776
author Nakano, Satoshi
Nishimura, Kazuhiko
author_facet Nakano, Satoshi
Nishimura, Kazuhiko
contents Standard optimal growth models implicitly impose a ``perpetual existence'' constraint, which can ethically justify infinite misery in stagnant economies. This paper investigates the optimal longevity of a dynasty within a Critical-Level Utilitarian (CLU) framework. By treating the planning horizon as an endogenous choice variable, we establish a structural isomorphism between static population ethics and dynamic growth theory. Our analysis derives closed-form solutions for optimal consumption and longevity in a roundabout production economy. We show that under low productivity, a finite horizon is structurally optimal to avoid the creation of lives not worth living. This result suggests that the termination of a dynasty can be interpreted not as a failure of sustainability, but as an {altruistic termination} to prevent intergenerational suffering. We also highlight an ethical asymmetry: while a finite horizon is optimal for declining economies, growing economies under intergenerational equity demand the ultimate sacrifice from the current generation.
format Preprint
id arxiv_https___arxiv_org_abs_2409_15978
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Optimal longevity of a dynasty
Nakano, Satoshi
Nishimura, Kazuhiko
General Economics
Economics
Standard optimal growth models implicitly impose a ``perpetual existence'' constraint, which can ethically justify infinite misery in stagnant economies. This paper investigates the optimal longevity of a dynasty within a Critical-Level Utilitarian (CLU) framework. By treating the planning horizon as an endogenous choice variable, we establish a structural isomorphism between static population ethics and dynamic growth theory. Our analysis derives closed-form solutions for optimal consumption and longevity in a roundabout production economy. We show that under low productivity, a finite horizon is structurally optimal to avoid the creation of lives not worth living. This result suggests that the termination of a dynasty can be interpreted not as a failure of sustainability, but as an {altruistic termination} to prevent intergenerational suffering. We also highlight an ethical asymmetry: while a finite horizon is optimal for declining economies, growing economies under intergenerational equity demand the ultimate sacrifice from the current generation.
title Optimal longevity of a dynasty
topic General Economics
Economics
url https://arxiv.org/abs/2409.15978