Gerontocracy revisited: unilateral transfer to the young may benefit the middle-aged
AbstractAccording to conventional wisdom, intergenerational transfers can survive, in the absence of altruism, only if the old are net recipients. I prove that this need not hold in an overlapping 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 and when the young face no credit market constraints. 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Public Economics.
Volume (Year): 88 (2004)
Issue (Month): 1-2 (January)
Contact details of provider:
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.
- Poutvaara, Panu, 2004. "Gerontocracy revisited: Unilateral transfer to the young may benefit the middle-aged," Munich Reprints in Economics 19295, University of Munich, Department of Economics.
- 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
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Salant, David J., 1991. "A repeated game with finitely lived overlapping generations of players," Games and Economic Behavior, Elsevier, vol. 3(2), pages 244-259, May.
- Konrad, Kai A, 1995. "Social Security and Strategic Inter-vivos Transfers of Social Capital," Journal of Population Economics, Springer, vol. 8(3), pages 315-26, August.
- Tirole, Jean, 1985. "Asset Bubbles and Overlapping Generations," Econometrica, Econometric Society, vol. 53(6), pages 1499-1528, November.
- Cremer, Helmuth & Kessler, Denis & Pestieau, Pierre, 1992.
"Intergenerational transfers within the family,"
European Economic Review,
Elsevier, vol. 36(1), pages 1-16, January.
- CREMER, Helmuth & KESSLER, Denis & PESTIEAU, Pierre, . "Intergenerational transfers within the family," CORE Discussion Papers RP -970, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Cremer, H. & Kessler, D. & Pestieau, P., 1989. "Intergenerational Transfers Within The Family," CORE Discussion Papers 1989018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Antonio Rangel, 1999.
"Forward and Backward Intergenerational Goods: A Theory of Intergenerational Exchange,"
00001, Stanford University, Department of Economics.
- Antonio Rangel, 2000. "Forward and Backward Intergenerational Goods: A Theory of Intergenerational Exchange," NBER Working Papers 7518, National Bureau of Economic Research, Inc.
- Michele Boldrin & Aldo Rustichini, 2000. "Political Equilibria with Social Security," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 3(1), pages 41-78, January.
- Stefan Homburg, 1991. "Interest and Growth in an Economy with Land," Canadian Journal of Economics, Canadian Economics Association, vol. 24(2), pages 450-59, May.
- Smith, Lones, 1992. "Folk theorems in overlapping generations games," Games and Economic Behavior, Elsevier, vol. 4(3), pages 426-449, July.
- Wildasin, David E, 1991. "Income Redistribution in a Common Labor Market," American Economic Review, American Economic Association, vol. 81(4), pages 757-74, September.
- Thomas F. Cooley & Jorge Soares, 1999. "A Positive Theory of Social Security Based on Reputation," Journal of Political Economy, University of Chicago Press, vol. 107(1), pages 135-160, February.
- Kandori, Michihiro, 1992. "Repeated Games Played by Overlapping Generations of Players," Review of Economic Studies, Wiley Blackwell, vol. 59(1), pages 81-92, January.
- Köthenbürger, Marko & Poutvaara, Panu, 2006.
"Social security reform and investment in education: Is there scope for a Pareto improvement?,"
Munich Reprints in Economics
19487, University of Munich, Department of Economics.
- Marko Kothenbürger & Panu Poutvaara, 2006. "Social Security Reform and Investment in Education: Is There Scope for a Pareto Improvement?," Economica, London School of Economics and Political Science, vol. 73(290), pages 299-319, 05.
- Köthenbürger, Marko & Poutvaara, Panu, 2006. "Social security reform and investment in education: Is there scope for a Pareto improvement?," Munich Reprints in Economics 19486, University of Munich, Department of Economics.
- Marko Köthenbürger & Panu Poutvaara, 2007.
"Rent Taxation and its Intertemporal Welfare Effects in a Small Open Economy,"
CESifo Working Paper Series
2158, CESifo Group Munich.
- Marko Koethenbuerger & Panu Poutvaara, 2009. "Rent taxation and its intertemporal welfare effects in a small open economy," International Tax and Public Finance, Springer, vol. 16(5), pages 697-709, October.
- Koethenbuerger, Marko & Poutvaara, Panu, 2009. "Rent taxation and its intertemporal welfare effects in a small open economy," Munich Reprints in Economics 19461, University of Munich, Department of Economics.
- Gersbach, Hans & Siemers, Lars, 2005.
"Land Reforms and Economic Development,"
CEPR Discussion Papers
5184, C.E.P.R. Discussion Papers.
- Iñigo Iturbe-Ormaetxe & Guadalupe Valera, 2012.
"Social security reform and the support for public education,"
Journal of Population Economics,
Springer, vol. 25(2), pages 609-634, January.
- Iñigo Iturbe Ormaetxe & Guadalupe Valera, 2004. "Social Security Reform And The Support For Public Education," Working Papers. Serie AD 2004-19, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Gersbach, Hans & Siemers, Lars, 2005. "Can Democracy Educate a Society?," IZA Discussion Papers 1693, Institute for the Study of Labor (IZA).
- Torben M. Andersen & Joydeep Bhattacharya, 2013. "The Intergenerational Welfare State," CESifo Working Paper Series 4359, CESifo Group Munich.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.