Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Social Optimum in an OLG Model with Paternalistic Altruism

Abstract : There is no consensus yet on the correct way to write the social utility function in presence of paternalistic altruism. This note shows that the speci cation of the central planner objective is crucial for optimal capital intensity and optimal growth in a one and a two-sector models. In a one-sector model, optimal growth depends on preferences when paternalistic altruism enters the social utility function; otherwise it does only depend on the capital share as in the standard golden rule. In a two-sector model, optimal growth depends on preferences and relative capital intensities when paternalistic altruism enters the social utility function; otherwise it does only depend on the capital share of the investment good sector. Moreover, both in a one and a two sector model, the optimal growth rate tends to be higher when warm-glow altruism enters the social utility function.
Document type :
Preprints, Working Papers, ...
Complete list of metadatas

Cited literature [6 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-00644094
Contributor : Anne Peguin-Feissolle <>
Submitted on : Wednesday, November 23, 2011 - 3:33:24 PM
Last modification on : Wednesday, August 5, 2020 - 3:10:42 AM
Long-term archiving on: : Friday, February 24, 2012 - 2:29:51 AM

File

DTGREQAM2011_52.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-00644094, version 1

Collections

Citation

Marion Davin, Karine Gente, Carine Nourry. Social Optimum in an OLG Model with Paternalistic Altruism. 2011. ⟨halshs-00644094⟩

Share

Metrics

Record views

369

Files downloads

581