Bequests and the Intergenerational Degree of Altruism.

This paper shows that Barro's (1974) debt neutrliaty theorem does not hold in OLG economies whenever the marginal rate of substitution between both periods' consumptions evaluated at the modified golden rule capital stock is lower that the degree of intergenerational altruism. It could be deduced from this result that an increase in the degree of altruism induces an increase in bequests.

MoreLess

Year of publication:	1999
Authors:	Thibault, E.
Institutions:	Groupement de Recherche en Économie Quantitative d'Aix-Marseille (GREQAM), Aix-Marseille School of Economics (AMSE)
Subject:	MATHEMATICAL ANALYSIS \| INHERITANCE \| GENERATIONS

More details

Series:	G.R.E.Q.A.M..
Type of publication:	Book / Working Paper
Notes:	9 pages
Classification:	C62 - Existence and Stability Conditions of Equilibrium ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; O41 - One, Two, and Multisector Growth Models
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005634356