Fair Allocations in an Overlapping Generations Economy^,

This paper investigates fair (i.e., envy-free and efficient) allocations in an overlapping generations economy without production with two-period lived agents. We show that there is a conflict between no-envy efficiency when all have identical preferences. crucially depends on the size of given young age consumption initial old generation relative to at golden-rule. then exist non-stationary preferences for which such does not arise, regardless generation. JEL Classifications: D60, D63, D70