In this article, we provide a theory that is able to account for the observed co-movement between the shift in intergenerational living arrangements from coresidence to non-coresidence and economic growth. Our theory is consistent with the diminution in the status of the elderly documented by...

The paper characterizes the optimal tax policy and the optimal quality of day care services in a OLG model with warm-glow altruism where parental choices over child care arrangements affect the probability that the child becomes a high-skilled adult in a type-speciffc way. With respect to...