Intergenerational altruism and neoclassical growth models

Philippe Michel, Emmanuel Thibault () and Vidal, Jean-Pierre ()
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Vidal, Jean-Pierre: European Central Bank, DG Economics, http://www.ecb.europa.eu/home/html/index.en.html

No 386, Working Paper Series from European Central Bank

Abstract: This paper surveys intergenerational altruism in neoclassical growth models. It first examines Barro's approach to intergenerational altruism, whereby successive generations are linked by recursive altruistic preferences. Individuals have an altruistic concern only for their children, who in turn also have altruistic feelings for their own children. The conditions under which the Ricardian equivalence (debt neutrality) theorem applies are specified. The effectiveness of fiscal policy is further analysed in the context of an economy populated by heterogeneous families differing with respect to their degree of intergenerational altruism. Other forms of altruism, referred to as ad hoc altruism, are also examined, along with their implications for fiscal policy.

Keywords: Neoclassical general aggregative models; Altruism; Fiscal Policy. (search for similar items in EconPapers)
JEL-codes: E13 D64 E62 C60 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge and nep-mac
Date: 2004-08
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Chapter: Intergenerational altruism and neoclassical growth models (2006)
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