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We study a growth model with two types of agents who are heterogeneous in their degree of family altruism. We prove … that every equilibrium path converges to a unique steady state, and study the effect of altruism on the properties of … steady-state equilibrium. We show that aggregate income is positively related to both level of altruism and altruism …
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Democratic countries with substantial inequality and where people believe that success depends on connections and luck induce political support for high tax rates and generous welfare states. Traditional wisdom is that such policies harm the economy, but there is not much evidence that countries...
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generations ; growth ; family altruism …
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