Cass criterion(Redirected from Cass Criterion)
A major feature which sets overlapping generations models in economics apart from the standard model with a finite number of infinitely lived individuals is that the First welfare theorem might not hold, that is competitive equilibria may be not be Pareto optimal.
- Cass, David (1972), "On capital overaccumulation in the aggregative neoclassical model of economic growth: a complete characterization", Journal of Economic Theory, 4 (2): 200–223, doi:10.1016/0022-0531(72)90149-4
- Balasko, Yves; Shell, Karl (1980), "The overlapping generations model, I: the case of pure exchange without money", Journal of Economic Theory, 23 (3): 281–306, doi:10.1016/0022-0531(80)90013-7
- Farmer, Roger E. A. (1999). The Macroeconomics of Self-fulfilling Prophecies. MIT Press. p. 132.
|This economics-related article is a stub. You can help Wikipedia by expanding it.|