Blast from the past: The altruism model is richer than you think

• Provides full characterization of two-period deterministic altruism model. Policy and value functions are discontinuous in general. Show existence novel front-loaded transfer, enabling autarky. Correctly solved model features higher savings more front-loading transfers. Results robust (income shocks, parent savings). We provide the first theoretical standard a setting, thereby providing coherent methodology for studying equilibria this class models. Under general conditions, policy discontinuous; non-smoothness escalates one order than one-player settings due to differing interests among players. show that there exists type transfer enables recipient stay The logic behind it challenges theory as severs link between motives first-order conditions. Our results revise qualitative predictions dynamic models highlight their computation demands global, not local, methods. introducing income shocks varying assumptions on savings. Numerical experiments indicate correctly transfers previously thought, accompanied by recipients.