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On the Interplay Between Intergenerational Transfers and Natural Resources

Author

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  • Roberto Iacono

    (Norwegian University of Science and Technology (NTNU))

Abstract

This paper studies an overlapping generations model with selfish agents, natural resources and human capital externalities. The initial result is to quantify the economic effects of intergenerational transfers by comparing a complete markets allocation with transfers to an allocation without transfers due to incomplete markets. The core contribution is then to show that a higher resource regeneration rate boosts the effect of transfers on economic growth for both allocations, although it also implies a higher gap in growth performances between them. Finally, it is shown that transfers can be financed through a constant lump-sum tax relative to the output level.

Suggested Citation

  • Roberto Iacono, 2014. "On the Interplay Between Intergenerational Transfers and Natural Resources," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 12(2), pages 167-199.
    • Handle: RePEc:seb:journl:v:12:y:2014:i:2:p:167-199
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Overlapping generations; intergenerational transfers; natural resources; endogenous growth;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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