TOUGH LOVE AND INTERGENERATIONAL ALTRUISM

• 成果类型: Article
• 署名作者: Bhatt, Vipul; Ogaki, Masao
• 署名单位: Keio University; James Madison University
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2012.00701.x
• 发表日期: 2012
• 页码: 791-814
• 关键词: time preference; consumer socialization; parental style; substitution; CHOICE; income; MODEL; panel

摘要

This article develops and studies a tough love model of intergenerational altruism. We model tough love by modifying the Barro-Becker standard altruism model in two ways. First, the childs discount factor is endogenously determined, so lower childhood consumption leads to a higher discount factor later in life. Second, the parent evaluates the childs lifetime utility with a constant high discount factor. Our model predicts that parental transfers will fall when the childs discount factor falls. This is in contrast with the standard altruism model, which predicts that parental transfers are independent of exogenous changes in the childs discount factor.