TY  - JOUR
AU  - Golosov,Mikhail
AU  - Jones,Larry E.
AU  - Tertilt,Michele
TI  - Efficiency with Endogenous Population Growth
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 10231
PY  - 2004
Y2  - January 2004
UR  - http://www.nber.org/papers/w10231
L1  - http://www.nber.org/papers/w10231.pdf
N1  - Author contact info:
Mikhail Golosov
Department of Economics
Princeton University
111 Fisher Hall
Princeton, NJ 08544
Tel: 609/258-4003
Fax: 609/258-6419
E-Mail: golosov@princeton.edu

Larry E. Jones
Department of Economics
University of Minnesota
4-101 Hanson Hall
1925 Fourth Street South
Minneapolis, MN 55455
Tel: 612/624-4553
Fax: 612/624-0209
E-Mail: lej@umn.edu

Michèle Tertilt
Department of Economics
University of Mannheim
L7, 3-5
68131 Mannheim
Germany
Tel: +49-621-181-1902
E-Mail: tertilt@uni-mannheim.de
AB  - In this paper, we generalize the notion of Pareto-efficiency to make it applicable to environments with endogenous populations. Two efficiency concepts are proposed, P-efficiency and A-efficiency. The two concepts differ in how they treat people who are not born. We show how these concepts relate to the notion of Pareto-efficiency when fertility is exogenous. We then prove versions of the first welfare theorem assuming that decision making is efficient within the dynasty. Finally, we give two sets of sufficient conditions for non-cooperative equilibria of family decision problems to be efficient. These include the Barro and Becker model as a special case.
ER  -