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The political economy of intergenerational cooperation

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  • Cigno, Alessandro

Abstract

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.

Suggested Citation

  • Cigno, Alessandro, 2006. "The political economy of intergenerational cooperation," Handbook on the Economics of Giving, Reciprocity and Altruism, Elsevier.
  • Handle: RePEc:eee:givchp:2-25
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    Cited by:

    1. Ana Fernandes, 2011. "Altruism, labor supply and redistributive neutrality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1443-1469, October.
    2. Wolff, François-Charles, 2006. "Les transferts ascendants au Bangladesh, une décision familiale?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 271-316, mars-juin.
    3. Birchenall, Javier A. & Soares, Rodrigo R., 2009. "Altruism, fertility, and the value of children: Health policy evaluation and intergenerational welfare," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 280-295, February.
    4. Gil Epstein, 2006. "The political economy of population economics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 255-257, June.
    5. repec:eee:hapoch:v1_609 is not listed on IDEAS
    6. J. Ignacio Conde-Ruiz & Eduardo L. Giménez & Mikel Pérez-Nievas, 2010. "Millian Efficiency with Endogenous Fertility," Review of Economic Studies, Oxford University Press, vol. 77(1), pages 154-187.
    7. Cigno, A., 2016. "Conflict and Cooperation Within the Family, and Between the State and the Family, in the Provision of Old-Age Security," Handbook of the Economics of Population Aging, Elsevier.
    8. Ermisch, John, 2006. "Fairness in the family: implications for parent-adult child interactions," ISER Working Paper Series 2006-13, Institute for Social and Economic Research.
    9. Barnett, Richard & Bhattacharya, Joydeep & Puhakka, Mikko, 2012. "Private Versus Public Old-Age Security," School of Economics Working Paper Series 2012-14, LeBow College of Business, Drexel University.
    10. Alessandro Cigno & Annalisa Luporini, 2006. "Optimal Policy Towards Families with Di¤erent Amounts of Social Capital, in the Presence of Asymmetric Information and Stochastic Fertility," CHILD Working Papers wp03_06, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
    11. Michele Boldrin & Ana Montes, 2009. "Assessing the efficiency of public education and pensions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 285-309, April.

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    JEL classification:

    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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