NDLI: Strategic transfers, redistributive fiscal policies, and family bonds: a micro-economic analysis

Content Provider	Springer Nature Link
Author	Chang, Yang Ming
Copyright Year	2011
Abstract	This paper presents a micro-economic model to analyze intergenerational exchange in which the utility maximizing decisions of “selfish” children on family services, labor market activities, and leisure are determined endogenously. We show that altruistic parents’ financial transfers have a disincentive effect on the labor supply of their children and that the children’s equilibrium income is positively correlated with parental income. Based on the theoretical model, we find that redistributing US $1 from children to their parents increases parental transfers by less than US$ 1, implying that intergenerational public transfers are Ricardian non-neutral. However, the non-neutral redistributive transfers may enhance intergenerational family bonds because the equilibrium levels of services rendered by children to their parents increase.
Starting Page	1481
Ending Page	1502
Page Count	22
File Format	PDF
ISSN	09331433
Journal	Journal of Population Economics
Volume Number	25
Issue Number	4
e-ISSN	14321475
Language	English
Publisher	Springer-Verlag
Publisher Date	2011-05-17
Publisher Place	Berlin, Heidelberg
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Altruistic transfers Redistributive transfers Family bonds Demography Population Economics Social Policy Labor Economics
Content Type	Text
Resource Type	Article
Subject	Demography Economics and Econometrics

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Strategic transfers, redistributive fiscal policies, and family bonds: a micro-economic analysis