We consider a small open overlapping generation economy with descending altruism. We introduce heterogeneity within dynasties by assuming that each parent procreates a fixed proportion of selfsh children at each generation. Altruistic parents can recognize the type of each children and tike into account when bequeathing. there is no Ricardian equivalence and an active public intergenerational transfer policy is attractive to altruism dynasty members, although there may be no unanimity among them. We display reasonable conditions for indirect preferences to be single-peaked and we apply the median voter theorem.
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Paper provided by Notre-Dame de la Paix, Sciences Economiques et Sociales in its series Papers with number
225.
Length: 53 pages Date of creation: 2001 Date of revision: Handle: RePEc:fth:nodapa:225
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Find related papers by JEL classification: D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution D64 - Microeconomics - - Welfare Economics - - - Altruism D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Models of Political Processes: Rent-seeking, Elections, Legislatures, and Voting Behavior D91 - Microeconomics - - Intertemporal Choice and Growth - - - Intertemporal Consumer Choice; Life Cycle Models and Saving H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management
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