Optimal contracting with dynastic altruism: Family size and per capita consumption

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Optimal contracting with dynastic altruism: Family size and per capita consumption

We use a Barro–Becker model of endogenous fertility, in which parents are subject to idiosyncratic shocks that are private information (either to labor productivity or taste for leisure), to study the efficient degree of consumption inequality in the long run. The planner uses the trade-off between family size and future consumption and leisure, to provide incentives for workers to reveal their...

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ژورنال

عنوان ژورنال: Journal of Economic Theory

سال: 2013

ISSN: 0022-0531

DOI: 10.1016/j.jet.2013.04.022