We study collective decisions by time-discounting individuals choosing a common consumption stream. We show that with any heterogeneity in time preferences, every Pareto efficient and non-dictatorial method of aggregating utility functions must be time-inconsistent. We also show that decisions made via non-dictatorial voting methods are intransitive. (JEL D71, D72, D91)
Jackson, Matthew O., and Leeat Yariv.
"Collective Dynamic Choice: The Necessity of Time Inconsistency."
American Economic Journal: Microeconomics,
Social Choice; Clubs; Committees; Associations
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Intertemporal Household Choice; Life Cycle Models and Saving