Rochester Tough Love and Intergenerational Altruism

نویسندگان

  • Vipul Bhatt
  • Masao Ogaki
چکیده

This paper develops and studies a tough love model of intergenerational altruism. We model tough love by modifying the Barro-Becker standard altruism model in two ways. First, the child’s discount factor is endogenously determined, so that low consumption at young age leads to a higher discount factor later in her life. Second, the parent evaluates the child’s lifetime utility with a constant high discount factor. The tough love model predicts that transfers from the parent will fall when the child’s discount factor falls. This is in contrast with the predictions of the standard altruism model that transfers from parents are independent of exogenous changes in the child’s discount factor.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Tough Love, Intergenerational Altruism, and Worldviews

This paper discusses the tough love model of intergenerational altruism we developed and some of on-going empirical research on tough love behavior in survey data collected in Japan and United States. The tough love model modifies the Barro-Becker standard altruism model in two ways. First, the child’s discount factor is endogenously determined, so that low consumption at young age leads to a h...

متن کامل

Tough love and Intergenerational Altruism

This paper develops and studies a tough love model of intergenerational altruism. We model tough love by modifying the standard altruism model (Barro, Becker 1974) in two ways. First, the child’s discount factor is endogenously determined, so that low consumption at young age leads to a higher discount factor later in her life. Second, the parent evaluates the child’s life time utility with a c...

متن کامل

Determining Who’s Altruistic: Evidence from Estate Tax Data

The role of intergenerational altruism in explaining disparities between predicted and actual patterns of wealth accumulation is still unclear. Recent works suggests traditional testing methods may fail because altruism is in fact heterogeneous across the population. This paper uses a heretofore unexamined data set to attempt to identify demographic characteristics that may be correlated with i...

متن کامل

Provision of a public good with multiple dynasties∗

Because carbon emissions create externalities across countries and generations, climate policy requires international cooperation and intergenerational altruism. A differential game using overlapping generations with intergenerational altruism shows how altruism and cooperation interact, and provides estimates of their relative importance in determining equilibrium steady state carbon levels. A...

متن کامل

A Theory of Intergenerational Altruism

Modeling intergenerational altruism is crucial to evaluate the long-term consequences of current decisions, and requires a set of principles guiding such altruism. We axiomatically develop a theory of pure, direct altruism: Altruism is pure if it concerns the total utility (rather than the mere consumption utility) of future generations, and direct if it directly incorporates the utility of all...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2008