IDEAS home Printed from https://ideas.repec.org/a/oup/restud/v53y1986i3p349-367..html
   My bibliography  Save this article

The Existence of Perfect Equilibria in a Model of Growth with Altruism between Generations

Author

Listed:
  • Wolfgang Leininger

Abstract

An intertemporal model of consumption and bequest behaviour is specified and analysed as a game between generations. The main feature of this game is that no a priori restrictions (like linearity) are placed on the strategy choice of generations. The paper gives an existence proof for perfect (Nash) equilibria in finite and infinite horizon versions of the model and determines characteristic properties of equilibrium strategies. The main result is to demonstrate existence of stationary perfect equilibrium if the time horizon is infinite.

Suggested Citation

  • Wolfgang Leininger, 1986. "The Existence of Perfect Equilibria in a Model of Growth with Altruism between Generations," Review of Economic Studies, Oxford University Press, vol. 53(3), pages 349-367.
  • Handle: RePEc:oup:restud:v:53:y:1986:i:3:p:349-367.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2307/2297633
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grossman, Gene M & Helpman, Elhanan, 1998. "Intergenerational Redistribution with Short-Lived Governments," Economic Journal, Royal Economic Society, vol. 108(450), pages 1299-1329, September.
    2. Edward C. Prescott & Kevin L. Reffett, 2016. "Preface: Special Issue on Dynamic Games in Macroeconomics," Dynamic Games and Applications, Springer, vol. 6(2), pages 157-160, June.
    3. Blackburn, Keith & Cipriani, Giam Pietro, 2005. "Intergenerational transfers and demographic transition," Journal of Development Economics, Elsevier, vol. 78(1), pages 191-214, October.
    4. Balbus, Łukasz & Reffett, Kevin & Woźny, Łukasz, 2018. "On uniqueness of time-consistent Markov policies for quasi-hyperbolic consumers under uncertainty," Journal of Economic Theory, Elsevier, vol. 176(C), pages 293-310.
    5. Lilia Maliar & Serguei Maliar, 2016. "Ruling Out Multiplicity of Smooth Equilibria in Dynamic Games: A Hyperbolic Discounting Example," Dynamic Games and Applications, Springer, vol. 6(2), pages 243-261, June.
    6. Balbus, Łukasz & Jaśkiewicz, Anna & Nowak, Andrzej S., 2016. "Non-paternalistic intergenerational altruism revisited," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 27-33.
    7. Wozny Lukasz & Growiec Jakub, 2012. "Intergenerational Interactions in Human Capital Accumulation," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 12(1), pages 1-47, June.
    8. Paul J. Zak, 2000. "Larceny," Economics of Governance, Springer, vol. 1(2), pages 157-179, July.
    9. Balbus, Łukasz & Reffett, Kevin & Woźny, Łukasz, 2012. "Stationary Markovian equilibrium in altruistic stochastic OLG models with limited commitment," Journal of Mathematical Economics, Elsevier, vol. 48(2), pages 115-132.
    10. Boldrin, Michele, 2005. "Public education and capital accumulation," Research in Economics, Elsevier, vol. 59(2), pages 85-109, June.
    11. repec:spr:joptap:v:165:y:2015:i:1:d:10.1007_s10957-014-0555-1 is not listed on IDEAS
    12. Roberts, Kevin, 2015. "Dynamic voting in clubs," Research in Economics, Elsevier, vol. 69(3), pages 320-335.
    13. Santos, Manuel S., 2002. "On Non-existence of Markov Equilibria in Competitive-Market Economies," Journal of Economic Theory, Elsevier, vol. 105(1), pages 73-98, July.
    14. Jaśkiewicz, Anna & Nowak, Andrzej S., 2014. "Stationary Markov perfect equilibria in risk sensitive stochastic overlapping generations models," Journal of Economic Theory, Elsevier, vol. 151(C), pages 411-447.
    15. Nowak, Andrzej S., 2006. "A multigenerational dynamic game of resource extraction," Mathematical Social Sciences, Elsevier, vol. 51(3), pages 327-336, May.
    16. Łukasz Balbus & Kevin Reffett & Łukasz Woźny, 2015. "Time consistent Markov policies in dynamic economies with quasi-hyperbolic consumers," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(1), pages 83-112, February.
    17. Robert Kollmann, 1997. "Endogenous fertility in a model with non-dynastic parental preferences," ULB Institutional Repository 2013/7638, ULB -- Universite Libre de Bruxelles.
    18. Lakshmi Raut, 2006. "Two-sided altruism, Lindahl equilibrium, and Pareto optimality in overlapping generations models," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 27(3), pages 729-736, April.
    19. Woo, Jaejoon, 2003. "Social polarization, industrialization, and fiscal instability: theory and evidence," Journal of Development Economics, Elsevier, vol. 72(1), pages 223-252, October.
    20. Balbus, Łukasz & Reffett, Kevin & Woźny, Łukasz, 2013. "A constructive geometrical approach to the uniqueness of Markov stationary equilibrium in stochastic games of intergenerational altruism," Journal of Economic Dynamics and Control, Elsevier, vol. 37(5), pages 1019-1039.
    21. Hori, Hajime, 1997. "Dynamic Allocation in an Altruistic Overlapping Generations Economy," Journal of Economic Theory, Elsevier, vol. 73(2), pages 292-315, April.
    22. Manuel Santos, "undated". "On Non-Existence of Markov Equilibria in Competitive-Market Economies," Working Papers 2133305, Department of Economics, W. P. Carey School of Business, Arizona State University.
    23. Balbus, Łukasz & Jaśkiewicz, Anna & Nowak, Andrzej S., 2015. "Stochastic bequest games," Games and Economic Behavior, Elsevier, vol. 90(C), pages 247-256.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:restud:v:53:y:1986:i:3:p:349-367.. 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: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.