Advanced Search
MyIDEAS: Login

Beggar-thy-parents? A Lifecycle Model of Intergenerational Altruism

Contents:

Author Info

  • Sang-Wook Stanley Cho

    ()
    (School of Economics, The University of New South Wales)

Abstract

This paper constructs a quantitative general equilibrium model with both lifecycle and dynastic features along with uninsurable labor income to assess differences in wealth and intergenerational transfers across countries. The model features both 'pure' and 'impure' forms of altruism and investigates the role of borrowing constraints in accounting for the timing of intergenerational transfers between intervivos transfers and bequests. Under a perfect capital market, the timing of parental transfers is irrelevant. However, under borrowing constraints, parental transfer will be geared towards helping out borrowing-constrained children. The model is calibrated to match the US and Korean economy. Numerical experiments show that tightening borrowing constraints leads to more intervivos transfers geared towards younger children and lower level of bequest. Borrowing constraints also play a role in accounting for the observed differences in the wealth inequality between the two economies.

Download Info

If 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.
File URL: http://wwwdocs.fce.unsw.edu.au/economics/Research/WorkingPapers/2008_15.pdf
Download Restriction: no

Bibliographic Info

Paper provided by School of Economics, The University of New South Wales in its series Discussion Papers with number 2008-15.

as in new window
Length: 46 pages
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:swe:wpaper:2008-15

Contact details of provider:
Postal: Australian School of Business Building, Sydney 2052
Phone: (+61)-2-9385-3380
Fax: +61)-2- 9313- 6337
Email:
Web page: http://www.economics.unsw.edu.au/
More information through EDIRC

Related research

Keywords: intervivos transfer; wealth accumulation; incomplete markets;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:swe:wpaper:2008-15. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gabriele Gratton).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.