Pareto-improving intergenerational transfers
نویسنده
چکیده
In the presence of endogenous growth intergenerational transfer from the young to the old reduce per capita income growth and harm future generations. On the other hand, competitive equilibria are inefficient if externalities sustain long-run growth. This paper shows that if individuals retire in the last period of their life, the inefficiency of the market economy can be removed by an investment subsidy without making the current or future generations worse off only if coupled with intergenerational transfers from the young to the old.
منابع مشابه
Determinants of intergenerational transfers between elderly parents and adult children in the city of Tehran
Intergenerational private transfers as a component of intergenerational relations, defined as exchang of financial and nonfinancial rsources between different generations in the family. Financial transfers are known as supply of lifeycle deficit in the old and young ages and an important factor to fullfill needs in these stages of lifecycle. The aim of the study is to recognize composition of f...
متن کاملComments Rotten Parents and Child Labor
Baland and Robinson (2000) investigate the conditions under which decisions by parents about their own children’s work are inefficient. Using a simple two-period model with altruistically linked family members, they show that child labor decisions are efficient when credit markets are perfect and intergenerational altruistic transfers are nonzero. Moreover, they show that when the level of chil...
متن کاملClimate Policy and Intergenerational Welfare∗
We use a two-sector OLG model to study the intergenerational effects of a tax designed to conserve a natural resource such as the global atmosphere. The traded asset capitalizes future environmental benefits created by the tax, benefiting the current asset owners, the old generation. Absent a transfer, the tax harms the young generation by decreasing their real wage. Future generations benefit ...
متن کاملDams and Intergovernmental Transfer: Are Dam Projects Pareto Improving in China?
Large-scale dams are controversial public infrastructure projects due to the unevenly distributed benefits and losses to local regions. The central government can make redistributive fiscal transfers to attenuate the impacts and reduce the inequality among local governments, but whether large-scale dam projects are Pareto improving is still a question. Using the geographic variation of dam impa...
متن کاملSubgame perfect manipulation of children by overlapping generations of agents with two-sided altruism and endogenous fertility1
In this paper we consider an overlapping generations model with endogenous fertility and two-sided altruism and show the limitations of applying commonly used open loop Nash equilibrium in characterizing equilibrium transfers from parents to children in the form of bequest, and transfers from children to parents as voluntary old-age support. Since in our model children are concerned with parent...
متن کامل