Borrowing constraints, parental altruism and welfare

Jorge Soares

Journal of Macroeconomics, 2015, vol. 45, issue C, 1-20

Abstract: This paper investigates the welfare impact of a borrowing constraint that does not allow children to borrow against future income. In an overlapping-generations model with altruistic parents, the inability to borrow increases children’s savings and parental transfers, raising children’s welfare as well as average welfare in the short-run and in the long-run.

Keywords: Borrowing constraint; Altruism; Overlapping generations; Welfare; Children (search for similar items in EconPapers)
JEL-codes: D91 E21 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Working Paper: Borrowing Constraints, Parental Altruism and Welfare (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jmacro:v:45:y:2015:i:c:p:1-20

DOI: 10.1016/j.jmacro.2015.03.001

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