Intertemporal equity and efficient allocation of resources. (Q1867555)

In this paper is shown that competitive-paths which are efficient satisfy a terminal cost minimization condition in the sense of Malinvaud. Using this result, competitive paths which are equitable and efficient are shown to satisfy Hartwick's investment rule, which states that the value of net investment is zero at each date. The author's result indicates that Hartwick's rule can help to signal inefficiency of competitive equitable paths.