We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
Love thy children or money.
- Authors
Pestieau, Pierre; Thibault, Emmanuel
- Abstract
This paper presents a simple OLG model which is consistent with observed consumer behavior, capital accumulation and wealth distribution, and yields some new conclusions about fiscal policy. By considering a society in which individuals are distinguished according to two characteristics, altruism and wealth preference, we show that those who in the long run hold the bulk of private capital are not so much motivated by dynastic altruism as by preference for wealth. In this setting, estate taxation is a questionable instrument of redistribution: it penalizes the wealthy, but favors the top wealthy. On the other hand, even though Ricardian equivalence holds, both public debt and PAYG pensions lead to a transfer of resources from the top wealthy to the other individuals.
- Subjects
MATHEMATICAL models of economic development; RICARDIAN Model of International Trade; DEMAND for money; DEBT management; SAVINGS; INTERNATIONAL trade -- Econometric models
- Publication
Economic Theory, 2012, Vol 50, Issue 1, p31
- ISSN
0938-2259
- Publication type
Article
- DOI
10.1007/s00199-010-0578-2