Donor Altruism and the Transfer Paradox in an Overlapping Generations Model
This paper examines the transfer problem between two countries when a donor exhibits altruistic utility toward a recipient in a one-sector overlapping generations model. We demonstrate that if the donor has a larger marginal propensity to save than the recipient, the donor's altruism never contributes to donor enrichment irrespective of the degree of the donor's altruism. Donor enrichment occurs only if the donor has a smaller marginal propensity to save and a sufficiently high level of altruism. These findings imply that the altruism of a donor toward a recipient does not necessarily explain the motivation to voluntarily provide a transfer.
Year of publication: |
2014
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Authors: | Hamada, Kojun ; Yanagihara, Mitsuyoshi |
Published in: |
Review of International Economics. - Wiley Blackwell, ISSN 0965-7576. - Vol. 22.2014, 5, p. 905-922
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Publisher: |
Wiley Blackwell |
Saved in:
Online Resource
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