Altruism, intergenerational transfers of time and bequests

This paper uses a standard two-period overlapping generation model to examine the behavior of an economy where both intergenerational transfers of time and bequests are available. While bequests have been examined extensively, time transfers have received little or no attention in the literature. As...

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Bibliographic Details
Published inJournal of economic dynamics & control Vol. 28; no. 8; pp. 1681 - 1701
Main Authors Cardia, Emanuela, Michel, Philippe
Format Journal Article
LanguageEnglish
Published Elsevier B.V 01.06.2004
Elsevier
SeriesJournal of Economic Dynamics and Control
Subjects
Altruism
Bequests
Economic control
Economic dynamics
Time
Time transfers
Transfer
J2
Bequests
Altruism
Time transfers
D9
J1
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Summary:This paper uses a standard two-period overlapping generation model to examine the behavior of an economy where both intergenerational transfers of time and bequests are available. While bequests have been examined extensively, time transfers have received little or no attention in the literature. Assuming a log-linear utility function and a Cobb–Douglas production function, we derive an explicit solution for the dynamics and show that altruistic intergenerational time transfers can take place in presence of a binding non-negativity constraint on bequests. We also show that with either type of transfers capital is an increasing function of the intergenerational degree of altruism. However while with time transfers the labor supply of the young increases with the degree of altruism, with bequests it may decrease.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ISSN:0165-1889
1879-1743
DOI:10.1016/S0165-1889(03)00095-2