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Propensione aggregata al risparmio, rapporto ricchezza-reddito e distribuzione della ricchezza nel modello del ciclo di vita "egualitario": il ruolo delle variabili demografiche

Author

Listed:
  • Carlo Casarosa
  • Luca Spataro

Abstract

In this paper we explore the impact of demographic variables on the aggregate propensity to save (PS), on the aggregate wealth income ratio (WIR) and on the distribution of wealth (WD), in the life cycle (LC) "egalitarian" model. We depart from Modigliani and Brumberg (1954) and Atkinson (1971) pioneering papers by assuming that the household, rather than the individual, is the relevant economic unit. More precisely, we allow parents to care about their children, such that consumption (and saving) of the household change when children are born and until the latter join the labor force and form a new household. Under this scenario we show that, in a stationary economy, the timing of births strongly affects both the WIR and the WD, while the dispersion, within each household, of such a timing affects the WD only. In a steadily growing economy due to population growth, the impact of the timing of births and of the number of children turns out to be significant for the PS, the WIR and the WD, in a much stronger manner than in the traditional LC model; moreover, we find that the aggregate propensity to save is a decreasing function of the population growth rate when the latter changes: i) due to the timing of births or ii) due to the number of children and provided that the age of parenthood is sufficiently low. The latter results are in clear contrast with one of the fundamental propositions of the traditional LC theory.

Suggested Citation

  • Carlo Casarosa & Luca Spataro, 2005. "Propensione aggregata al risparmio, rapporto ricchezza-reddito e distribuzione della ricchezza nel modello del ciclo di vita "egualitario": il ruolo delle variabili demografiche," Discussion Papers 2005/51, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  • Handle: RePEc:pie:dsedps:2005/51
    Note: ISSN 2039-1854
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    File URL: https://www.ec.unipi.it/documents/Ricerca/papers/2005-51.pdf
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    Citations

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    Cited by:

    1. Luciano Fanti & Luca Gori, 2012. "Endogenous Lifetime in an Overlapping-Generations Small Open Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(2), pages 121-152, June.
    2. Manuela Gussoni & Andrea Mangani, 2012. "The Impact of Public Funding for Innovation on Firms' R&D Investments: Do R&D Cooperation and Appropriability Matter?," L'industria, Società editrice il Mulino, issue 2, pages 237-254.
    3. Lorenzo Corsini & Pier Mario Pacini & Luca Spataro, 2010. "Workers' Choice on Pension Schemes: an Assessment of the Italian TFR Reform Through Theory and Simulations," Discussion Papers 2010/96, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    4. Luciano Fanti & Luca Gori, 2009. "Endogenous fertility, endogenous lifetime and economic growth: the role of health and child policies," Discussion Papers 2009/91, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    5. Maurizio Lisciandra, 2007. "The Role of Reciprocating Behaviour in Contract Choice," Discussion Papers 2007/65, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    6. Luciano Fanti & Luca Gori, 2008. "PAYG pensions and economic cycles: exogenous versus endogenous fertility," Discussion Papers 2008/75, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

    More about this item

    Keywords

    Life Cycle; Saving; Wealth; Wealth Distribution; Demographic Variables;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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