A Strategic Altruism Model in Which Ricardian Equivalence Does Not Hold
AbstractThis article demonstrates that Ricardian equivalence does not necessarily hold in models with altruistic transfers once one takes into account the strategic behavior of recipients as well as donors. To influence the final allocation of consumption in altruistic settings, potential recipients can threaten to refuse transfers. The authors apply the extended Nash bargaining solution to the problem of an altruistic parent and a possible altruistic child. They show that when the government redistributes between the parent and child, it changes their endowments and the equilibrium threats and, thus, the final allocation of consumption. Copyright 1990 by Royal Economic Society.
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Bibliographic InfoArticle provided by Royal Economic Society in its journal The Economic Journal.
Volume (Year): 100 (1990)
Issue (Month): 403 (December)
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- Laurence J. Kotlikoff & Assaf Razin & Robert W. Rosenthal, 1991. "A Strategic Altruism Model In Which Ricardian Equivalence Does Not Hold," NBER Working Papers 2699, National Bureau of Economic Research, Inc.
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- Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, 1995.
"Parental Altruism and Inter Vivos Transfers: Theory and Evidence,"
NBER Working Papers
5378, National Bureau of Economic Research, Inc.
- Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1997. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 105(6), pages 1121-66, December.
- Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1995. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," Boston University - Institute for Economic Development 65, Boston University, Institute for Economic Development.
- Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, . "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," IPR working papers 95-22, Institute for Policy Resarch at Northwestern University.
- Yang-Ming Chang, 2012. "Strategic transfers, redistributive fiscal policies, and family bonds: a micro-economic analysis," Journal of Population Economics, Springer, vol. 25(4), pages 1481-1502, October.
- Jorge Soares, 2008. "Borrowing Constraints, Parental Altruism and Welfare," Working Papers 08-12, University of Delaware, Department of Economics.
- Loretti I. Dobrescu & Laurence J. Kotlikoff & Alberto F. Motta, 2008.
"Why Aren't Developed Countries Saving?,"
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- David Altig & Steve J. Davis, 1991.
"Borrowing Constraints and Two-Sided Altruism With an Application to Social Security,"
NBER Working Papers
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- Altig, David & Davis, Steven J., 1993. "Borrowing constraints and two-sided altruism with an application to social security," Journal of Economic Dynamics and Control, Elsevier, vol. 17(3), pages 467-494, May.
- Rebelein, Robert, 2004.
"Ricardian Equivalence Survives Strategic Behavior,"
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62, Vassar College Department of Economics.
- Kotlikoff, Laurence J., 2002.
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- Altonji, Joseph G & Hayashi, Fumio & Kotlikoff, Laurence J, 1992.
"Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data,"
American Economic Review,
American Economic Association, vol. 82(5), pages 1177-98, December.
- Joseph G. Altonji & Fumio Hayashi & Laurence J. Kotlikoff, 1993. "Is the Extended Family Altruistically Linked? Direct Tests Using Micro Data," NBER Working Papers 3046, National Bureau of Economic Research, Inc.
- Severinov, Sergei, 2006. "Bequests as signals: Implications for fiscal policy," Journal of Public Economics, Elsevier, vol. 90(10-11), pages 1995-2008, November.
- Julian Jamison, 2012. "Games with Synergistic Preferences," Games, MDPI, Open Access Journal, vol. 3(1), pages 41-55, March.
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