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Intergenerational transfers and demographic transition

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  • Blackburn, Keith
  • Cipriani, Giam Pietro

Abstract

This paper presents an analysis of demographic transition based on the endogenous evolution of intergenerational transfers along an economy's endogenous path of development. Two-period-lived agents belonging to overlapping generations choose optimally their desired levels of consumption and fertility, together with their desired sizes of transfers to both parents and children. Parents are more efficient than children in producing output, but some parental time must be devoted to child-rearing. At low levels of development, fertility is high and the flow of net intergenerational transfers is from the young to the old. At high levels of development, fertility is low and the flow of net transfers is from the old to the young. These results accord strongly with empirical observations and the analysis may be seen as formalising, for the first time, a long-standing and well-respected hypothesis in the demographic transition literature.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Development Economics.

Volume (Year): 78 (2005)
Issue (Month): 1 (October)
Pages: 191-214

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Handle: RePEc:eee:deveco:v:78:y:2005:i:1:p:191-214

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References

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Citations

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Cited by:
  1. Adriana Carolina Silva Arias & Patricia Gonzalez Román, 2007. "Una revisión a la composición y transición demográfica," REVISTA FACULTAD DE CIENCIAS ECONÓMICAS, UNIVERSIDAD MILITAR NUEVA GRANADA.
  2. Atsue Mizushima, 2008. "Intergenerational Transfers of Time and Public Long-term Care with an Aging Population," Economics Working Papers ECO2008/36, European University Institute.
  3. Aoki, Takaaki, 2008. "On the Implications of Two-way Altruism in Human-Capital-Based OLG Model," MPRA Paper 12492, University Library of Munich, Germany.
  4. Javier Olivera, 2013. "Old-age Support and Demographic Transition in Developing Countries. A Cultural Transmission Model," Working Papers 201307, Geary Institute, University College Dublin.
  5. Sugawara, Kouki, 2010. "Intergenerational transfers and fertility: Trade-off between human capital and child labour," Journal of Macroeconomics, Elsevier, vol. 32(2), pages 584-593, June.
  6. Andreas Sch�Fer, 2005. "The Interaction Between Endogenous Fertility And Inequality In The Political Economy," Manchester School, University of Manchester, vol. 73(4), pages 522-541, 07.
  7. Schäfer, Andreas & Valente, Simone, 2011. "Habit Formation, Dynastic Altruism, And Population Dynamics," Macroeconomic Dynamics, Cambridge University Press, vol. 15(03), pages 365-397, June.
  8. Luciano Fanti, 2012. "Endogenous labour supply, habits and aspirations," Discussion Papers 2012/144, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  9. Atsue Mizushima & Keiichi Koda, 2007. "Risk Sharing and Growth in the Gifts Economy," Discussion Papers in Economics and Business 07-02, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
  10. Elise S. Brezis & Rodolphe Dos Santos Ferreira, 2014. "Endogenous fertility with a sibship size effect," Working Papers of BETA 2014-03, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.

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