Intergenerational Consumer Welfare In Dynamic Commodity Markets
In conunodity markets, both prices and the cohorts of con sumers change over time. Previous stabilization literature applied to changing generations incorporates a preference for inequity, does not require those generations who gain from lower prices to compensate those who lose, and assumes instability which preserves arithmetic mean prices. This paper examines preferences for both equity and specific forms of inequity, en forces actual Income compensation to make the Pareto criterion applicable, and Includes both arithmetic and geometric mean preserving price instability. Previous stabilization conclusions are recast into a dynamic context and new ordinal criteria based upon demand and expenditure functions are derived.