The failure of Ricardian equivalence under dynastic altruism
نویسندگان
چکیده
منابع مشابه
Intergenerational Altruism, Ricardian Equivalence and the Relevance of Distributional Policy
In recent years there has been a growing controversy concerning the e¤ective role of distributional policy in economies in which agents hold altruistic preferences. We show that in order to establish cross sectional Distributional Neutrality households require information on consanguinity links prior to making their decisions on consumption and bequests. If such information is not available due...
متن کاملMatching grants and Ricardian Equivalence
This paper investigates the effectiveness of matching grants to correct for interjurisdictional spillovers in the light of Bernheim general neutrality result. Indeed this result suggests that the usual argument that matching grants are needed to internalize the externality arising from the existence of interjuridictional spillovers is an artifact of the assumption that jurisdictions neglect the...
متن کاملRicardian Equivalence Survives Strategic Behavior
Robert Barro (1974) showed government debt has no real effects when generations are linked by altruistically motivated intergenerational transfers, a result now known widely as the Ricardian Equivalence Theorem. An important condition for debt neutrality is believed to be the absence of strategic interactions between members of different generations. I use a simple two-period, parent and child ...
متن کاملRicardian Equivalence with Incomplete Household Risk Sharing
Several important empirical studies (for example, Altonji, Hayashi, and Kotlikoff, 1992, 1996, 1997) have found that households are not altruistically linked in a way consistent with the standard Ricardian model, as put forward by Barro (1974). We built a two-sided altruistic-linkage model in which private transfers are made in the presence of two types of shocks: an observable shock that is pu...
متن کاملEndogenous fertility in a model with non-dynastic parental altruism.
An economic model of fertility choice is presented and discussed in which the utility level of agents depends upon their consumption, the number of children they have, and upon the consumption of their children. Parents are altruistic toward their children, but in a more limited sense than in the fertility model presented by Becker and Barro in 1988, in which the utility of parents depends upo...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Mathematical Economics
سال: 2007
ISSN: 0304-4068
DOI: 10.1016/j.jmateco.2007.01.002