Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/152820
Authors: 
Michel, Philippe
Thibault, Emmanuel
Vidal, Jean-Pierre
Year of Publication: 
2004
Series/Report no.: 
ECB Working Paper 386
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.
Subjects: 
altruism
fiscal policy
Neoclassical general aggregative models
JEL: 
E13
D64
E62
C60
Document Type: 
Working Paper

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