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Title: |
Consistent Planning under Uncertain Lifetime |
| Author: |
Hadar, Josef;
Seo, Tae Kun |
| Author
Affiliation: |
S Methodist U |
| Source: |
International Economic Journal, Summer 1987, v. 1, no. 2, pp. 95-108 |
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Publication Date: |
Summer 1987 |
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Abstract: |
This paper considers the problem of
intertemporal planning when changing tastes result in inconsistent
plans. This problem has been considered in the literature under the
assumption of a lifetime certainty. Some of the solutions proposed in
the literature exhibit certain undesirable properties such as
incoherence and lack of Pareto-optimality. This paper proposes a
procedure for solving the intertemporal dilemmas when lifetime is
uncertain. The proposed solution is coherent and Pareto-optimal, and is,
in fact, valid for the case of certain as well as uncertain lifetime. |
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