Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties

I compare the predictions of two types of dynastic models for the persistence of wealth across generations: models that focus on uninsurable risk and intergenerational consumption smoothing but abstract from the fertility decision, such as Loury and Laitner, and models without risk that focus on the...

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Autor principal: Alvarez, F.
Formato: JOUR
Materias:
Bequest
Dynamic programming
Fertility
Intergenerational transfers
Persistence
Acceso en línea:http://hdl.handle.net/20.500.12110/paper_10942025_v2_n1_p65_Alvarez
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Biblioteca Digital - Facultad de Ciencias Exactas y Naturales (UBA) de Universidad de Buenos Aires
id todo:paper_10942025_v2_n1_p65_Alvarez
record_format dspace
spelling todo:paper_10942025_v2_n1_p65_Alvarez2023-10-03T16:05:02Z Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties Alvarez, F. Bequest Dynamic programming Fertility Intergenerational transfers Persistence I compare the predictions of two types of dynastic models for the persistence of wealth across generations: models that focus on uninsurable risk and intergenerational consumption smoothing but abstract from the fertility decision, such as Loury and Laitner, and models without risk that focus on the fertility decision, such as Becker and Barro. I show that when both uninsurable risk and fertility decisions are present, a striking result obtains: wealthier parents have more children, but the transfer to each child is independent of wealth. Since this result is counterfactual, I also discuss extensions that can resurrect persistence.Journal of Economic LiteratureClassification Numbers: C61, D31, D1, J13 © 1999 Academic Press. JOUR info:eu-repo/semantics/openAccess http://creativecommons.org/licenses/by/2.5/ar http://hdl.handle.net/20.500.12110/paper_10942025_v2_n1_p65_Alvarez
institution Universidad de Buenos Aires
institution_str I-28
repository_str R-134
collection Biblioteca Digital - Facultad de Ciencias Exactas y Naturales (UBA)
topic Bequest
Dynamic programming
Fertility
Intergenerational transfers
Persistence
spellingShingle Bequest
Dynamic programming
Fertility
Intergenerational transfers
Persistence
Alvarez, F.
Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties
topic_facet Bequest
Dynamic programming
Fertility
Intergenerational transfers
Persistence
description I compare the predictions of two types of dynastic models for the persistence of wealth across generations: models that focus on uninsurable risk and intergenerational consumption smoothing but abstract from the fertility decision, such as Loury and Laitner, and models without risk that focus on the fertility decision, such as Becker and Barro. I show that when both uninsurable risk and fertility decisions are present, a striking result obtains: wealthier parents have more children, but the transfer to each child is independent of wealth. Since this result is counterfactual, I also discuss extensions that can resurrect persistence.Journal of Economic LiteratureClassification Numbers: C61, D31, D1, J13 © 1999 Academic Press.
format JOUR
author Alvarez, F.
author_facet Alvarez, F.
author_sort Alvarez, F.
title Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties
title_short Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties
title_full Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties
title_fullStr Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties
title_full_unstemmed Social Mobility: The Barro-Becker Children Meet the Laitner-Loury Dynasties
title_sort social mobility: the barro-becker children meet the laitner-loury dynasties
url http://hdl.handle.net/20.500.12110/paper_10942025_v2_n1_p65_Alvarez
work_keys_str_mv AT alvarezf socialmobilitythebarrobeckerchildrenmeetthelaitnerlourydynasties
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