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- W2159259413 abstract "This paper proposes a simple OLG model which is consistent with the essential facts about consumer behavior, capital accumulation and wealth distribution, and yields some new and surprising conclusions about fiscal policy. By considering a society in which individuals are distinguished according to two characteristics, altruism and wealth preference, we show that those who in the long run hold the bulk of private capital are not so much motivated by dynastic altruism as by preference for wealth. Two types of social segmentation can result with different wealth distribution. To a large extent our results seem to fit reality better than those obtained with standard optimal growth models in which dynastic altruism (or rate of impatience) is the only source of heterogeneity: overaccumulation can appear, public debt and unfunded pensions are not neutral, estate taxation can improve the welfare of the top wealthy." @default.
- W2159259413 created "2016-06-24" @default.
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- W2159259413 date "2007-09-21" @default.
- W2159259413 modified "2023-10-02" @default.
- W2159259413 title "The spenders-hoarders theory of capital accumulation, wealth distribution and fiscal policy" @default.
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