Global convergence in an overlapping generations model with two-sided altruism

Takaaki Aoki and Kazuo Nishimura

Journal of Evolutionary Economics, 2017, vol. 27, issue 5, No 16, 1205-1220

Abstract: Abstract We study the evolutionary dynamics of an overlapping generations economy with two-sided altruism, where each generation cares about the utilities of its parental generation, its offspring, and its own. We assume that the young and old generations in each period act jointly, as a central planner. We then introduce the concepts of a two-sided altruistic path and a two-sided altruistic stationary path. Then, we go on to prove that the former always converges to the latter, in the two-sided altruistic model. This stationary capital level is higher than the steady-state level in the model with a constant discount factor.

Keywords: Two-sided altruism; Global convergence; Euler equation; Principle of optimality (search for similar items in EconPapers)
JEL-codes: C61 D91 O41 (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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DOI: 10.1007/s00191-017-0519-3

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