On the Implications of Two-Sided Altruism in Human-Capital-Based OLG Model

Takaaki Aoki
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Abstract

This article summarizes some propositions regarding economic dynamics and implications of two-way altruism, on the basis of the human-capital-based OLG model of Ehrlich and Lui (1991) and Ehrlich and Kim (2007) with application of a modified, fertility-endogenized definition of linearly separable two-way altruism examined by Abel (1987) and Altig and Davis (1993). Some properties in both a transition process and a steady state, and the effect of unfunded social security on an equilibrium path are also discussed. My calibration results and analyses show that (1) the combination of altruism toward parents and children is crucial for determining a threshold level of initial human capital and productivity in a transition process (stagnant to growth or growth to stagnant), and the generation’s attained utility, (2) dynamic consistency might not necessarily be the best choice to overpass the stumbling block against growth regime, (3) in this human-capital-based OLG model, a regular recursive induction approach might still cause inefficiency in terms of an ex-post Pareto optimality criterion as of two periods later, even if strategic effects for after children (two generations later) are appropriately taken account of, and (4) unfunded social security tax, which involves actuarially fair insurance as well as certainty premium transfer, does affect critical values for a regime change as well as dynamic equilibrium paths and corresponding subsequent life strategies, even in two-way altruistic economy.
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基于人力资本的OLG模型中双边利他主义的含义
本文在Ehrlich和Lui(1991)以及Ehrlich和Kim(2007)基于人力资本的OLG模型的基础上,运用Abel(1987)和Altig和Davis(1993)检验的线性可分双向利他主义的改进的生育内生定义,总结了有关双向利他主义的经济动态和含义的一些命题。讨论了过渡过程和稳态的一些性质,以及无资金保障对均衡路径的影响。我的校准结果和分析表明:(1)对父母和子女的利他主义的结合对于确定过渡过程(从停滞到增长或从增长到停滞)中初始人力资本和生产率的阈值水平以及这一代人获得的效用至关重要;(2)动态一致性可能不一定是跨越阻碍增长制度的绊脚石的最佳选择;(3)在这个基于人力资本的OLG模型中。常规的递归归纳方法可能仍然会导致两个时期后的帕累托最优性标准的效率低下,即使对后子女(两代人之后)的战略影响被适当地考虑在内,以及(4)无资金的社会保障税,这涉及精算公平保险以及确定性保费转移。即使在双向利他经济中,也会影响制度变化的临界值,以及动态平衡路径和相应的后续生活策略。
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