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Altruism, Intergenerational Transfers of Time and Bequests

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  • CARDIA, Emanuela
  • MICHEL, Philippe

Abstract

This paper uses a standard two-period overlapping generation model to examine the behavior of an economy where both intergenerational transfers of time and bequests are available. While bequests have been examined extensively, time transfers have received little or no attention in the literature. Assuming a log-linear utility function and a Cobb-Douglas production function, we derive an explicit solution for the dynamics and show that altruistic intergenerational time transfers can take place in presence of a binding non-negativity constraint on bequests. We also show that with either type of transfers capital is an increasing function of the intergenerational degree of altruism. However, while with time transfers the labor supply of the young increases with the degree of altruism, with bequests it may decrease

Suggested Citation

  • CARDIA, Emanuela & MICHEL, Philippe, 2003. "Altruism, Intergenerational Transfers of Time and Bequests," Cahiers de recherche 2003-04, Universite de Montreal, Departement de sciences economiques.
    • Handle: RePEc:mtl:montde:2003-04
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    3. Philippe Michel & Pierre Pestieau, 1998. "Fiscal Policy in a Growth Model with Both Altruistic and Nonaltruistic Agents," Southern Economic Journal, John Wiley & Sons, vol. 64(3), pages 682-697, January.
    4. Burbidge, John B, 1983. "Government Debt in an Overlapping-Generations Model with Bequests and Gifts," American Economic Review, American Economic Association, vol. 73(1), pages 222-227, March.
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    7. Pierre‐Andre Jouvet & Philippe Michel & Jean‐Pierre Vidal, 2000. "Intergenerational Altruism and the Environment," Scandinavian Journal of Economics, Wiley Blackwell, vol. 102(1), pages 135-150, March.
    8. Philippe Weil, 1987. "Love Thy Children," Post-Print hal-03393237, HAL.
    9. MICHEL, Ph. & PESTIEAU, P., 1998. "Fiscal policy in a growth model with both altruistic and nonaltruistic agents," LIDAM Reprints CORE 1301, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    10. Emanuela Cardia & Serena Ng, 2003. "Intergenerational Time Transfers and Childcare," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(2), pages 431-454, April.
    11. de la Croix, David & Michel, Philippe, 1997. "Altruism and self-refrain," LIDAM Discussion Papers IRES 1998010, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 00 Apr 1998.
    12. 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.
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    4. Palmisani, Cesare, 2008. "Una rassegna su alcuni modelli di crescita economica tipo Solow con dinamica caotica," MPRA Paper 9506, University Library of Munich, Germany.
    5. Zouhair Aït Benhamou & Lesly Cassin, 2018. "The effects of migration and remittances on development and capital in Caribbean Small Island Developing States," EconomiX Working Papers 2018-41, University of Paris Nanterre, EconomiX.
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    7. Elisabeth Hermann Frederiksen, 2006. "Spending Natural Resource Revenues in an Altruistic Growth Model," EPRU Working Paper Series 06-09, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
    8. Mizushima, Atsue, 2009. "Intergenerational transfers of time and public long-term care with an aging population," Journal of Macroeconomics, Elsevier, vol. 31(4), pages 572-581, December.
    9. Salvador Contreras, 2013. "The Influence of Migration on Human Capital Development," International Economic Journal, Taylor & Francis Journals, vol. 27(3), pages 365-384, September.
    10. Rydell, Ingrid, 2005. "Equity, Justice, Interdependence: Intergenerational Transfers and the Ageing Population," Arbetsrapport 2005:5, Institute for Futures Studies.
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    More about this item

    Keywords

    Altruism; time transfers; bequests;
    All these keywords.

    JEL classification:

    • J1 - Labor and Demographic Economics - - Demographic Economics
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor
    • D9 - Microeconomics - - Micro-Based Behavioral Economics

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