Fiscal Policy in an Overlapping Generations Model with Bequest-as-Consumption

Michel, Philippe;Pestieau, Pierre
(2004) Journal of Public Economic Theory — Vol. 6, n° 3, p. 397-407 (2004)

Files

jpet_6_3.pdf
  • Restricted Access
  • Adobe PDF
  • 90.67 KB
No access

Details

Authors
  • Michel, Philippe
    Author
  • Pestieau, PierreUliège
    Author
Abstract
This paper analyzes an overlapping generation (OLG) growth model wherein saving finances second period consumption and bequest-as-consumption. First, it looks at the market equilibrium and at the optimal solution; then it turns to the issue of decentralizing the optimal solution with various taxes and transfers. Depending on the available instruments, either a first-best or a second-best optimum can be achieved. Throughout the paper, the results are contrasted with those obtained in the standard OLG model without intergenerational transfers.
Affiliations

Citations

  • APA
  • Chicago
  • FWB

Michel, P., & Pestieau, P. (2004). Fiscal Policy in an Overlapping Generations Model with Bequest-as-Consumption. Journal of Public Economic Theory, 6(3), 397-407. https://doi.org/10.1111/j.1467-9779.2004.00171.x (Original work published 2004)