Existence of equilibrium in an OLG model with production and altruistic preferences

Thibault, Emmanuel

doi:10.1007/s001990050320

Cited by 36 publications

(24 citation statements)

References 6 publications

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“…Denoting the total stationary savings of this economy by s D (k) = s(w(k, k), 0, R(k, k)), a simple extension of the results provided by Thibault (2000) gives the following proposition.…”

Section: The Model With Bequest Motives and Dynamic Externalitiesmentioning

confidence: 93%

Altruism and Determinacy of Equilibria in Overlapping Generations Models with Externalities

Venditti

2003

Japanese Econ Rev

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This paper deals with an OLG model with production and a single commodity, in which agents are assumed altruistic and the aggregate production function contains external effects. I prove that, if the technology satisfies a minor assumption, which encompasses positive and negative externalities, some curvature conditions on the utility function ensure local determinacy of stationary and period 2 equilibria. I prove that non-separable, strictly concave preferences are a fundamental ingredient for the occurrence of indeterminate equilibria. Finally, considering the case of unbounded growth, I establish that for any utility and production functions a unique balanced growth path is globally determinate. JEL Classification Numbers: C62, E32.

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“…Denoting the total stationary savings of this economy by s D (k) = s(w(k, k), 0, R(k, k)), a simple extension of the results provided by Thibault (2000) gives the following proposition.…”

Section: The Model With Bequest Motives and Dynamic Externalitiesmentioning

confidence: 93%

Altruism and Determinacy of Equilibria in Overlapping Generations Models with Externalities

Venditti

2003

Japanese Econ Rev

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“…In general, there are several steady states in the Diamond economy (see Galor and Ryder 1989). Each of these states is potentially a steady state in an economy with altruism, when altruism is weak enough for the equilibrium bequest to be zero (see Thibault 2000 for dynastic altruism). We consider this point in the case of family altruism.…”

Section: The Long‐run Regimementioning

confidence: 99%

Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism

Lambrecht

Michel²,

Thibault

2006

J Public Economic Theory

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The idea of family altruism is that parents care only about their children's income and not about the use of this income made by the children. First, we establish dynamical properties which place the OLG model with family altruism halfway between the model with pure life-cyclers ( Diamond 1965 ; American Economic Review 55, 1126-1150) and the one with dynastic altruism ( Barro 1974 ; Journal of Political Economy 82, 1095-1117). Then, we show that this concept leads to interesting fiscal policy conclusions less clear-cut and more realistic than those obtained with the two previous standard OLG models: a pay-as-you-go social security is neutral but not a public debt. Copyright 2006 Blackwell Publishing, Inc..

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“…Several studies have analysed the existence issue in the standard Barro's model without pension funds ( = 0): see Thibault (2000) and Michel, Thibault and Vidal (2006). The introduction of pension funds adds a new di¢ culty: the game between non-competitive …rms a¤ects factor prices through the allocation of labor and capital between the two sectors.…”

Section: Steady Statementioning

confidence: 99%

Capital Accumulation, Welfare, and the Emergence of Pension-Fund Activism

Belan¹,

Michel

Wigniolle

2007

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This paper presents an overlapping generations model with altruistic consumers, in which pension funds, by holding a signi…cant share of capital assets, produce non competitive behavior. We study the consequences of such behavior on capital accumulation and welfare in the long run when subsidies are associated with contributions to pension funds. If bequests are operative and the subsidy rate is not too high, the capital stock increases with the introduction of pension funds, and this increases long run utility. If bequests are not operative without pension funds, the rise in long-run welfare is no longer guaranteed, even if the subsidy rate is low.JEL classi…cation: D43, D9, G23, D64. Keywords: imperfect competition, capital accumulation, pension funds, altruism.We are grateful to two anonymous referees for helpful advice and comments.

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Existence of equilibrium in an OLG model with production and altruistic preferences

Cited by 36 publications

References 6 publications

Altruism and Determinacy of Equilibria in Overlapping Generations Models with Externalities

Altruism and Determinacy of Equilibria in Overlapping Generations Models with Externalities

Capital Accumulation and Fiscal Policy in an OLG Model with Family Altruism

Capital Accumulation, Welfare, and the Emergence of Pension-Fund Activism

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