A dynamic model of altruistically-motivated transfers

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dc.contributor.author Barczyk, Daniel
dc.contributor.author Kredler, Matthias
dc.date.accessioned 2022-06-28T14:55:56Z
dc.date.available 2022-06-28T14:55:56Z
dc.date.issued 2014-04-01
dc.identifier.bibliographicCitation Barczyk, D., & Kredler, M. (2014). A dynamic model of altruistically-motivated transfers. Review of Economic Dynamics, 17, pp. 303–32
dc.identifier.issn 1094-2025
dc.identifier.uri http://hdl.handle.net/10016/35321
dc.description.abstract This paper studies a dynamic Markovian game of two infinitely-lived altruistic agents without commitment. Players can save, consume and give transfers to each other: We identify a continuum of equilibria in which imperfectly-altruistic agents act as if they were a perfectly-altruistic dynasty which is less patient than the two agents themselves. In such equilibria, the poor agent receives transfers until both effectively pool their wealth and tragedy-of-the-commons-type inefficiencies occur. We also provide a sharp characterization of strategic interactions in consumption and transfer behavior. This provides new insights relative to existing two-period models. It allows us to differentiate between the Samaritan's dilemma - e.g. a child runs down its assets inefficiently fast in anticipation of transfers - and what we refer to as the Prodigal-Son dilemma - e.g. parents do not leave an early bequest, anticipating a child's profligate behavior.
dc.language.iso eng
dc.publisher Elsevier
dc.rights © Elsevier
dc.rights Atribución-NoComercial-SinDerivadas 3.0 España
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.subject.other Consumption-saving decisions
dc.subject.other Inter-vivos transfers
dc.subject.other Altruism
dc.subject.other Differential games
dc.subject.other Rotten-kid theorem
dc.subject.other Social-security
dc.subject.other Bequests
dc.subject.other Wealth
dc.title A dynamic model of altruistically-motivated transfers
dc.type article
dc.subject.eciencia Economía
dc.identifier.doi https://doi.org/10.1016/j.red.2013.07.002
dc.rights.accessRights openAccess
dc.type.version acceptedVersion
dc.identifier.publicationfirstpage 303
dc.identifier.publicationissue 2
dc.identifier.publicationlastpage 328
dc.identifier.publicationtitle REVIEW OF ECONOMIC DYNAMICS
dc.identifier.publicationvolume 17
dc.identifier.uxxi AR/0000014732
dc.affiliation.dpto UC3M. Departamento de Economía
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