Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism
Abstract
The idea of family altruism is that parents care only about their children's income and not about the use of this income made by the children. First, we establish dynamical properties which place the OLG model with family altruism halfway between the model with pure life-cyclers ( Diamond 1965 ; American Economic Review 55, 1126-1150) and the one with dynastic altruism ( Barro 1974 ; Journal of Political Economy 82, 1095-1117). Then, we show that this concept leads to interesting fiscal policy conclusions less clear-cut and more realistic than those obtained with the two previous standard OLG models: a pay-as-you-go social security is neutral but not a public debt. Copyright 2006 Blackwell Publishing, Inc..Download Info
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Bibliographic Info
Article provided by Association for Public Economic Theory in its journal Journal of Public Economic Theory.
Volume (Year): 8 (2006)
Issue (Month): 3 (08)
Pages: 465-486
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Related research
Keywords:Other versions of this item:
- Lambrecht, Stephane & Michel, Philippe & Thibault, Emmanuel, 2006. "Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
- LAMBRECHT, Stéphane & MICHEL, Philippe & THIBAULT, Emmanuel, 2005. "Capital accumulation and fiscal policy in an OLG model with family altruism," CORE Discussion Papers 2005027, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
- D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy
- D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Lars Kunze, 2012. "Like Father, Like Son: Inheriting and Bequeathing," Ruhr Economic Papers 0318, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
- Seghir, Abdelkrim & Salem, Sherif, 2010. "In nitely-lived agents via two-sided altruism," MPRA Paper 31379, University Library of Munich, Germany.
- Bréchet, Thierry & Lambrecht, Stéphane, 2011. "Renewable resource and capital with a joy-of-giving resource bequest motive," Resource and Energy Economics, Elsevier, vol. 33(4), pages 981-994.
- Schwarz, Mordechai E. & Sheshinski, Eytan, 2007. "Quasi-hyperbolic discounting and social security systems," European Economic Review, Elsevier, vol. 51(5), pages 1247-1262, July.
- BRECHET, Thierry & LAMBRECHT, Stéphane, 2006.
"Family altruism with a renewable resource and population growth,"
CORE Discussion Papers
2006035, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Thierry Brechet & Stephane Lambrecht, 2009. "Family Altruism with Renewable Resource and Population Growth," Mathematical Population Studies, Taylor and Francis Journals, vol. 16(1), pages 60-78.
- Michel, Philippe & Thibault, Emmanuel & Vidal, Jean-Pierre, 2006.
"Intergenerational altruism and neoclassical growth models,"
Handbook on the Economics of Giving, Reciprocity and Altruism,
Elsevier.
- Philippe Michel & Emmanuel Thibault & Jean-Pierre Vidal, 2004. "Intergenerational altruism and neoclassical growth models," Working Paper Series 386, European Central Bank.
- Kunze, Lars, 2010. "Capital taxation, long-run growth, and bequests," Journal of Macroeconomics, Elsevier, vol. 32(4), pages 1067-1082, December.
- Lars Kunze, 2009. "Capital Taxation, Long-run Growth, and Bequests," Ruhr Economic Papers 0113, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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