IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Intergenerational exchange mobility and economic welfare

Listed author(s):
  • Markandya, Anil

The concepts of exchange and structural mobility are introduced and their relationship with the notion of Equality of Opportunity discussed. It is then shown that exchange mobility can have an impact on social welfare when the utility of any one generation is dependent on the consumption levels of overlapping generations. Whether such consumption interrelationships imply a preference for mobility or the reverse depends on whether the marginal utility of current consumption is raised or lowered by an increase in the consumption level of the associated generation. The rest of this paper examines these two cases in the context of a simple two-class family model. The analysis is concerned with the description of the optimal intergenerational behaviour within this framework. In order to be able to say anything substantial, however, it is necessary to impose some restrictions on the structure of the utility function. One restriction which has some appeal and which yields plausible patterns of optimal policy is that intergenerational links through the utility function be not too strong, in a sense that is made specific in the paper. Imposing this condition, one can show how intra-generational equity is affected both by intergenerational considerations and by the inherited past. Where intragenerational transfers involve efficiency losses, a simple tax model is examined. The circumstances under which, starting with no taxes, the tax rates converge are worked out in both the cases where the utility function has a pro as well as an anti-mobility bias.

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:
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal European Economic Review.

Volume (Year): 17 (1982)
Issue (Month): 3 ()
Pages: 307-324

in new window

Handle: RePEc:eee:eecrev:v:17:y:1982:i:3:p:307-324
DOI: 10.1016/S0014-2921(82)80066-4
Contact details of provider: Web page:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

in new window

  1. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, vol. 46(5), pages 1013-1024, September.
Full references (including those not matched with items on IDEAS)

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

When requesting a correction, please mention this item's handle: RePEc:eee:eecrev:v:17:y:1982:i:3:p:307-324. 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: (Dana Niculescu)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.