Abstract:This paper examines the transfer problem between two countries when a donor exhibits altruistic utility toward a recipient in a one-sector overlapping generations model. We demonstrate that if the donor has a larger marginal propensity to save than the recipient, the donor's altruism never contributes to donor enrichment irrespective of the degree of the donor's altruism. Donor enrichment occurs only if the donor has a smaller marginal propensity to save and a sufficiently high level of altruism. These finding… Show more
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