IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/150.html
   My bibliography  Save this paper

Altruism, uncertain lifetime and the distribution of wealth

Author

Listed:
  • Luisa Fuster

Abstract

This paper studies the dynamics of the distribution of wealth in a general equilibrium framework. It considers an overlapping generations model with production and altruistic preferences in which individuals face an uncertain lifetime and annuity markets do not exist. This paper focuses on the role that accidental bequests, voluntary bequests, and non--negativity constraints on bequests play in the dynamics of the distribution of wealth. It is proved that the equilibrium interest rate is lower than the one that satisfies the modified golden rule. In this economy, a social security system not only plays an insurance role, but also prevents capital overaccumulation. In fact, this paper shows that a pay--as--you--go social security system decentralizes the social planner solution as a competitive equilibrium.

Suggested Citation

  • Luisa Fuster, 1995. "Altruism, uncertain lifetime and the distribution of wealth," Economics Working Papers 150, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfgen:150
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/150.pdf
    File Function: Whole Paper
    Download Restriction: no

    References listed on IDEAS

    as
    1. Antoni Bosch-Domenech & Shyam Sunder, 2000. "Tracking the Invisible Hand: Convergence of Double Auctions to Competitive Equilibrium," Computational Economics, Springer;Society for Computational Economics, vol. 16(3), pages 257-284, December.
    2. Sala-i-Martin, Xavier X, 1996. "A Positive Theory of Social Security," Journal of Economic Growth, Springer, vol. 1(2), pages 277-304, June.
    3. Daniel Serra & Charles Revelle, 1992. "The PQ-Median problem: Location and districting of hierarchical facilities. Part I," Economics Working Papers 12, Department of Economics and Business, Universitat Pompeu Fabra.
    4. Thierry Foucault, 1994. "Price formation and order placement strategies in a dynamic order driven market," Economics Working Papers 99, Department of Economics and Business, Universitat Pompeu Fabra.
    5. Ramon Marimon & Fabrizio Zilibotti, 1994. "'Actual' versus 'virtual' employment in Europe: Why is there less employment in Spain?," Economics Working Papers 100, Department of Economics and Business, Universitat Pompeu Fabra.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Luisa Fuster, 1999. "Is Altruism Important for Understanding the Long-Run Effects of Social Security?," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 2(3), pages 616-637, July.
    2. Ana I. Moro-Egido, 2004. "Educational System, Altruism and Inequality in the Distribution of Income," Economic Working Papers at Centro de Estudios Andaluces E2004/46, Centro de Estudios Andaluces.

    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:upf:upfgen:150. 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: (). General contact details of provider: http://www.econ.upf.edu/ .

    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 CitEc recognized a reference but did not link an item in RePEc 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 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.