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degree of altruism

Recherches Économiques de Louvain/ Louvain Economic Review (1)

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Bequests and the Intergenerational Degree of Altruism *
Emmanuel Thibault
Journal:

Recherches Économiques de Louvain/ Louvain Economic Review / Volume 67 / Issue 2 / 2001

Published online by Cambridge University Press:

17 August 2016, pp. 131-138

Print publication:

2001
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We consider an OLG model with production and altruistic agents initially developed by Barro (1974). Through a simple example, we show that, contrary to the intuition of Abel (1987) and Weil (1987), an increase in the degree of altruism can result in a decrease in the stationary level of bequests even if the Diamond model has a unique and stable steady state. To rule out this counterintuitive case, an assumption on the curvature of the production function is necessary.