Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism

Stéphane Lambrecht, Philippe Michel and Emmanuel Thibault

Journal of Public Economic Theory, 2006, vol. 8, issue 3, 465-486

Abstract: The idea of family altruism is that parents care only about their children's income and not about the use of this income made by the children. First, we establish dynamical properties which place the OLG model with family altruism halfway between the model with pure life‐cyclers (Diamond 1965; American Economic Review 55, 1126–1150) and the one with dynastic altruism (Barro 1974; Journal of Political Economy 82, 1095–1117). Then, we show that this concept leads to interesting fiscal policy conclusions less clear‐cut and more realistic than those obtained with the two previous standard OLG models: a pay‐as‐you‐go social security is neutral but not a public debt.

Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
https://doi.org/10.1111/j.1467-9779.2006.00273.x

Related works:
Working Paper: Capital accumulation and fiscal policy in an OLG model with family altruism (2006)
Working Paper: Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism (2006)
Working Paper: Capital accumulation and fiscal policy in an OLG model with family altruism (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:jpbect:v:8:y:2006:i:3:p:465-486

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1097-3923

Access Statistics for this article

Journal of Public Economic Theory is currently edited by Rabah Amir, Gareth Myles and Myrna Wooders

More articles in Journal of Public Economic Theory from Association for Public Economic Theory Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().