Altruism and self-refrain
نویسندگان
چکیده
We address the issue of altruism when standard-of-living aspirations are transmitted from one generation to the other. In that case, the in uence of altruistic parents is not limited to the bequest they could leave; indeed, they direct the evolution of children's aspirations toward raising their utility by refraining their own consumption standard. We show that, even if there is no bequest, altruism always increases capital accumulation and has a stabilizing e ect on the economy. In an example nesting the Barro-Weil model, bequests can be positive even if this is never the case in the Barro-Weil economy. It is possible for an economy to experience regime shifts along the convergence path to the steady state. JEL Classi cation numbers: E32, O41.
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