The political economy of intergenerational cooperation
This chapter examines the scope for mutually beneficial intergenerational cooperation, and looks at various attempts to theoretically explain the emergence of norms and institutions that facilitate this cooperation. The contributions reviewed come from branches of economics as far apart as household economics and political economy, and encompass both the normative and the positive branch of public economics. Section 2 establishes a normative framework. Sections 3 and 4 examine the properties of the laissez-faire solution in a pure market economy, and in one where reproductive decisions and intra-family transfers are constrained by self-enforcing family constitutions. Section 5 introduces the state, and shows that first and second-best policy include a pension and a child benefit scheme. Section 6 rexamines the same issues in the presence of educational investment. Section 7 introduces uncertainty and asymmetrical information, and shows that second-best public transfers to families are conditional on number of children, and on some measure of the children's success in adult life. Section 8 looks at the possibility that intergenerational redistribution might be supported by some kind of political equilibrium. One type of model looks at the possibility of a self-enforcing constitution governing intergenerational transfers at societal rather than family level. Another type of model looks for voting equilibria in direct, and in representative democracies.
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.
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.
|This chapter was published in: ||This item is provided by Elsevier in its series Handbook on the Economics of Giving, Reciprocity and Altruism with number
2-25.||Handle:|| RePEc:eee:givchp:2-25||Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/bookseriesdescription.cws_home/BS_HE/description|
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.:
- Farrell, Joseph & Maskin, Eric, 1987.
"Renegotiation in Repeated Games,"
Department of Economics, Working Paper Series
qt9wv3h5jb, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Andreas Wagener, 2003. "Pensions as a portfolio problem: fixed contribution rates vs. fixed replacement rates reconsidered," Journal of Population Economics, Springer;European Society for Population Economics, vol. 16(1), pages 111-134, 02.
- Hansson, Ingemar & Stuart, Charles, 1989. "Social Security as Trade among Living Generations," American Economic Review, American Economic Association, vol. 79(5), pages 1182-1195, December.
- Eckstein, Zvi & Wolpin, Kenneth I., 1985. "Endogenous fertility and optimal population size," Journal of Public Economics, Elsevier, vol. 27(1), pages 93-106, June.
- Guido Tabellini, 1989.
"The Politics of Intergenerational Redistribution,"
NBER Working Papers
3058, National Bureau of Economic Research, Inc.
- Esteban, J.M. & sakovics, J., 1992.
"Intertemp[oral Transfer Institutions,"
UFAE and IAE Working Papers
172.92, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Docquier, Frederic & Michel, Philippe, 1999.
" Education Subsidies, Social Security and Growth: The Implications of a Demographic Shock,"
Scandinavian Journal of Economics,
Wiley Blackwell, vol. 101(3), pages 425-440, September.
- Frédéric Docquier & Philippe Michel, 1999. "Education subsidies, social security and growth: the implications of a demographic shock," ULB Institutional Repository 2013/230709, ULB -- Universite Libre de Bruxelles.
- Baland, J.M. & Robinson, J.A., 1998.
207, Notre-Dame de la Paix, Sciences Economiques et Sociales.
- Robert Kollmann, 1997. "Endogenous fertility in a model with non-dynastic parental altruism," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(1), pages 87-95.
- Kelvin R. Utendorf & Rowena A. Pecchenino, 1999.
"Social security, social welfare and the aging population,"
Journal of Population Economics,
Springer;European Society for Population Economics, vol. 12(4), pages 607-623.
- Pecchenino, R.A., 1994. "Social Security, Social Welfare and the Aging Population," Papers 9403, Michigan State - Econometrics and Economic Theory.
- Stiglitz, Joseph E & Weiss, Andrew, 1981. "Credit Rationing in Markets with Imperfect Information," American Economic Review, American Economic Association, vol. 71(3), pages 393-410, June.
- Rustichini, Aldo & Boldrin, Michele, 1995.
"Equilibria with social security,"
UC3M Working papers. Economics
3903, Universidad Carlos III de Madrid. Departamento de Economía.
- Veall, Michael R., 1986. "Public pensions as optimal social contracts," Journal of Public Economics, Elsevier, vol. 31(2), pages 237-251, November.
- Verbon, Harrie, 1993. "Public Pensions: The Role of Public Choice and Expectations," Journal of Population Economics, Springer;European Society for Population Economics, vol. 6(2), pages 123-135, May.
- Breyer, Friedrich, 1994. "The political economy of intergenerational redistribution," European Journal of Political Economy, Elsevier, vol. 10(1), pages 61-84, May.
- van Groezen, Bas & Leers, Theo & Meijdam, Lex, 2003. "Social security and endogenous fertility: pensions and child allowances as siamese twins," Journal of Public Economics, Elsevier, vol. 87(2), pages 233-251, February.
- Caillaud, B. & Cohen, D., 2000. "Inter-generational transfers and common values in a society," European Economic Review, Elsevier, vol. 44(4-6), pages 1091-1103, May.
- Alessandro Balestrino & Alessandro Cigno & Anna Pettini, 2002.
"Endogenous Fertility and the Design of Family Taxation,"
International Tax and Public Finance,
Springer;International Institute of Public Finance, vol. 9(2), pages 175-193, March.
- Alessandro Cigno & Annalisa Luporini & Anna Pettini, 2000. "Endogenous Fertility And The Design Of Family Taxation," CHILD Working Papers wp03_00, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
- Martin Kolmar, 1997. "Intergenerational redistribution in a small open economy with endogenous fertility," Journal of Population Economics, Springer;European Society for Population Economics, vol. 10(3), pages 335-356.
When requesting a correction, please mention this item's handle: RePEc:eee:givchp:2-25. 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: (Shamier, Wendy)
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.