ABSTRACT
This paper is concerned with Rawls’ principle of just savings. Both the intergenerational maxi-min solution and the Nash equilibrium are analyzed in the context of a simple growth model and a specific preference structure. The results are compared to the Utilitarian solution. The maxi-min solution is intertemporally inconsistent and all the Nash equilibria are Pareto inefficient. The latter part of the paper analyzes intergenerational strong equilibria, the a-core and the /?-core. It is shown that for the model in question the set of strong equilibria is empty, and that both the a-and p-cores are roughly speaking equal to the set of all Pareto efficient programmes of accumulation.
