Document Type

Report

Publication Date

1979

Number

65

Abstract

One of the central issues of welfare macroeconomics is, How much ought I a nation to save? The classic answer of Ramsey [11], that savings is optimal if it maximizes the integral of utility over time subject to the national income constraint, has guided research in the area for half a century. Recently this dominion of utilitarianism has come under scrutiny. Mirrlees, for instance, has shown how Ramsey's rule breaks down in the presence of technical change and population growth. Moreover, if the scope of the question is not merely efficiency but also justice, the whole framework of utility maximization may be indefensible. Thus, Rawls in his theory of justice remarks!

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