Dynamic efficiency and intergenerational altruism

B-Tier
Journal: Review of Economic Dynamics
Year: 2008
Volume: 11
Issue: 3
Pages: 679-687

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Can dynamic inefficiency that may occur in societies populated by non altruistic agents be removed by introducing intergenerational altruism ? Although the answer (see Abel, 1987, AER or Weil, 1987, JME) seems to be negative, this paper shows, by means of a simple example, that the presence of an arbitrarily low proportion of altruists can be sufficient to prevent a society from reaching a non Pareto optimal equilibrium. Intergenerational transfers from the old to the young can therefore provide an alternative ---to public debt, fiat money or money bubbles which transfer goods from the young to the old--- solution to the dynamic efficiency problem. (Copyright: Elsevier)

Technical Details

RePEc Handle
repec:red:issued:07-135
Journal Field
Macro
Author Count
1
Added to Database
2026-01-29