Family altruism with a renewable resource and population growth
AbstractWe develop an overlapping-generation model `a la Diamond with a non-constant population growth in which households privately own a natural renewable resource and have a family- altruism resource bequest motive. The natural resource can be either extracted and sold to the producing ﬁrms as a production factor, or bequeathed to the offspring to increase his adult disposable income. With a numerical application, we analyze how family altruism interplays with population growth to shape the dynamics of the whole economy. We also highlight the role of altruism in the case of a temporary negative demographic shock. The simulations we present show that a fall in the size of families increases the family natural resource stock but reduces resource extraction on the transition, through a reinforcement of family altruistic links. Hence, family altruism plays a key role in the recovery of the economy after the shock.
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Bibliographic InfoPaper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number 2006035.
Date of creation: 00 Apr 2006
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Other versions of this item:
- Thierry Brechet & Stephane Lambrecht, 2009. "Family Altruism with Renewable Resource and Population Growth," Mathematical Population Studies, Taylor and Francis Journals, vol. 16(1), pages 60-78.
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- BRECHET, Thierry & LAMBRECHT, Stéphane, 2006. "Intertemporal equilibrium with a resource bequest motive," CORE Discussion Papers 2006022, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Stéphane Lambrecht & Philippe Michel & Emmanuel Thibault, 2006.
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- Lambrecht, Stephane & Michel, Philippe & Thibault, Emmanuel, 2006. "Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism," Open Access publications from University of Toulouse 1 Capitole http://neeo.univ-tlse1.fr, University of Toulouse 1 Capitole.
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