Intergenerational Transfers in a General Equilibrium Setting
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The following chapter aims at answering three central questions. First, how do private intergenerational transfers affect generations’ welfare during a demographic transition? While the joint welfare effect of public intergenerational transfers and population aging has extensively been investigated (e.g. , ), so far relatively little has been said on the welfare implications of private intergenerational transfers. Where private transfers have been taken into account, the authors usually confine their analysis to a single transfer motive (cf. , , ). Lacking empirical evidence in favor of a predominant transfer motive, this approach seems little satisfactory. Section 5.2 therefore investigates the welfare implications of private transfers during a demographic transition by making allowances for different bequest motives.
KeywordsLabor Supply General Equilibrium Demographic Transition Intergenerational Transfer Private Transfer
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