The Elasticity of Intergenerational Substitution, Parental Altruism, and Fertility Choice

• 成果类型: Article
• 署名作者: Cordoba, Juan Carlos; Ripoll, Marla
• 署名单位: Iowa State University; Pennsylvania Commonwealth System of Higher Education (PCSHE); University of Pittsburgh
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdy071
• 发表日期: 2019
• 页码: 1935-1972
• 关键词: intertemporal substitution; consumption; LIFE; HEALTH; TRENDS; allocation; transfers; decline; MODEL; time

摘要

Dynastic models common in macroeconomics use a single parameter to control the willingness of individuals to substitute consumption both intertemporally, or across periods, and intergenerationally, or across parents and their children. This article defines the concept of elasticity of intergenerational substitution (EGS), and extends a standard dynastic model in order to disentangle the EGS from the EIS, or elasticity of intertemporal substitution. A calibrated version of the model lends strong support to the notion that the EGS is significantly larger than one. In contrast, estimates of the EIS suggests that it is at most one. What disciplines the identification is the need to match empirically plausible fertility rates for the U.S. We illustrate the potential role of the EGS in macroeconomics.