Fiscal Policy with Agents Differing in Altruism and in Ability
This Paper explores the effects of a menu of inter-generational fiscal policies (public debt financed by taxes, PAYG social security system and inheritance taxation) in an overlapping generations model with perfect altruism. It generalizes the model by Barro (1974) by introducing intra-generational heterogeneity. In other words, households differ in productivity and altruism. Within such a model wealth is entirely held in the steady-state by the families with the highest degree of altruism. Under plausible assumptions both public debt and social security are neutral à la Ricardo, while increasing inequality. Also, estate taxation can be Pareto worsening even though it fosters income equality.
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.
|Date of creation:||Feb 2004|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
|Order Information:|| Email: |
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.:
- John Laitner, 2001.
"Secular Changes in Wealth Inequality and Inheritance,"
wp020, University of Michigan, Michigan Retirement Research Center.
- Laitner, John, 2001. "Secular Changes in Wealth Inequality and Inheritance," Economic Journal, Royal Economic Society, vol. 111(474), pages 691-721, October.
- Nourry, Carine & Venditti, Alain, 2001.
"Determinacy of Equilibrium in an Overlapping Generations Model with Heterogeneous Agents,"
Journal of Economic Theory,
Elsevier, vol. 96(1-2), pages 230-255, January.
- Nourry, C. & Vendetti, A., 1998. "Determinacy of Equilibrium in an Overlapping Generations Model with Heterogenous Agents," G.R.E.Q.A.M. 98a02, Universite Aix-Marseille III.
- Falk, Ita & Stark, Oded, 2001.
"Dynasties and Destiny: On the Roles of Altruism and Impatience in the Evolution of Consumption and Bequests,"
London School of Economics and Political Science, vol. 68(272), pages 505-18, November.
- Stark, Oded & Falk, Ita, 2000. "Dynasties and Destiny: On the Roles of Altruism and Impatience in the Evolution of Consumption and Bequests," Economics Series 88, Institute for Advanced Studies.
- Stark, Oded & Falk, Ita, 2001. "Dynasties And Destiny: On The Roles Of Altruism And Impatience In The Evolution Of Consumption And Bequests," Discussion Papers 18749, University of Bonn, Center for Development Research (ZEF).
- Barro, Robert J, 1974.
"Are Government Bonds Net Wealth?,"
Journal of Political Economy,
University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
- Weil, Philippe, 1987. "Love thy children : Reflections on the Barro debt neutrality theorem," Journal of Monetary Economics, Elsevier, vol. 19(3), pages 377-391, May.
- N. Gregory Mankiw, 1999.
"The Savers-Spenders Theory of Fiscal Policy,"
Harvard Institute of Economic Research Working Papers
1888, Harvard - Institute of Economic Research.
- Paul A. Samuelson, 1958. "An Exact Consumption-Loan Model of Interest with or without the Social Contrivance of Money," Journal of Political Economy, University of Chicago Press, vol. 66, pages 467.
- Becker, Robert A, 1980. "On the Long-Run Steady State in a Simple Dynamic Model of Equilibrium with Heterogeneous Households," The Quarterly Journal of Economics, MIT Press, vol. 95(2), pages 375-82, September.
- Joseph E. Stiglitz, 1978.
"Notes on Estate Taxes, Redistribution, and the Concept of Balanced Growth Path Incidence,"
in: Research in Taxation, pages 137-150
National Bureau of Economic Research, Inc.
- Stiglitz, Joseph E, 1978. "Notes on Estate Taxes, Redistribution, and the Concept of Balanced Growth Path Incidence," Journal of Political Economy, University of Chicago Press, vol. 86(2), pages S137-50, April.
- Smetters, Kent, 1999. "Ricardian equivalence: long-run Leviathan," Journal of Public Economics, Elsevier, vol. 73(3), pages 395-421, September.
- MICHEL, Philippe & PESTIEAUÂ , Pierre, 1994. "Fiscal Policy in a Growth Model with Both Altruistic and Non Altruistic Agents," CORE Discussion Papers 1994049, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
When requesting a correction, please mention this item's handle: RePEc:cpr:ceprdp:4254. 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: ()The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address
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.