Gerontocracy revisited: unilateral transfer to the young may benefit the middle-aged
AbstractIt has been argued that in the absence of altruism, intergenerational transfers can survive only if the old are net recipients. I prove that this need not hold in an over-lapping generations model with a fixed factor. For example, the middle-aged owning land may gain by providing public education even when they cannot tax the young. This requires that labor is not mobile. Furthermore, establishing public education may benefit only the generation which pays for education twice, first for itself and then for the next generation.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 88 (2004)
Issue (Month): 1-2 (January)
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Web page: http://www.elsevier.com/locate/inca/505578
Other versions of this item:
- Panu Poutvaara, 2002. "Gerontocracy Revisited: Unilateral Transfer to the Young May Benefit the Middle-aged," Discussion Papers 275, Government Institute for Economic Research Finland (VATT).
- Panu Poutvaara, 2001. "Gerontocracy Revisited. Unilateral Transfer to the Young May Benefit the Middle-Aged," CESifo Working Paper Series 500, CESifo Group Munich.
- O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
- J12 - Labor and Demographic Economics - - Demographic Economics - - - Marriage; Marital Dissolution; Family Structure
- I20 - Health, Education, and Welfare - - Education - - - General
- C00 - Mathematical and Quantitative Methods - - General - - - General
- J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
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