Dynastic model fails to maximize social welfare, impacting future generations.
The dynastic model is not the best way to maximize social welfare because it doesn't always lead to the best outcomes for future generations. In most cases, altruistic transfers between generations are not the most effective way to plan policies. This means that governments should reconsider using this model for decision-making. Additionally, the preferences of the planner can change over time, which can lead to inconsistencies in decision-making. If these inconsistencies can be resolved, the main result may change slightly.