Optimal growth models under Rawlsian criteria

Stefano Bosi (University of Evry Paris-Saclay) & Thai Ha-Huy (University of Evry Paris-Saclay)

 

This article revisits the optimal growth with three distinct Rawlsian approaches: (1) the original Rawl-

sian criterion, popular in economic literature; (2) the maximin with multiple discount factors, introduced by [8];

(3) the rank-dependent criterion, applied by [27] to growth theory. Finally, we develop a new approach based on a

convex combination of the most common criteria: Ramsey-Cass-Koopmans and Rawls.

Keywords. Maximin principle; Multiple discount rates; Ramsey-Cass-Koopmans models; Rawls criterion.