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The Political Economy of Intergenerational Cooperation

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  • Alessandro Cigno

Abstract

The paper examines the scope for mutually beneficial intergenerational cooperation, and looks at various attempts to theoretically explain the emergence of norms and institutions that facilitate this cooperation. After establishing a normative framework, we examine the properties of the laissez-faire solution in a pure market economy, and in one where reproductive decisions and intergenerational transfers are governed by self-enforcing family constitutions. We then show that first and second-best policies include a pension and a child benefit scheme. Finally, we look at the possibility that intergenerational redistribution might be supported by either a constitution, or some kind of voting equilibrium.

Suggested Citation

  • Alessandro Cigno, 2005. "The Political Economy of Intergenerational Cooperation," CESifo Working Paper Series 1632, CESifo.
    • Handle: RePEc:ces:ceswps:_1632
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    Cited by:

    1. Jellal, Mohamed, 2009. "Family Institution and Filial Attention Contract," MPRA Paper 17713, University Library of Munich, Germany.
    2. Cigno, A., 2016. "Conflict and Cooperation Within the Family, and Between the State and the Family, in the Provision of Old-Age Security," Handbook of the Economics of Population Aging, in: Piggott, John & Woodland, Alan (ed.), Handbook of the Economics of Population Aging, edition 1, volume 1, chapter 0, pages 609-660, Elsevier.
    3. J. Ignacio Conde-Ruiz & Eduardo L. Giménez & Mikel Pérez-Nievas, 2010. "Millian Efficiency with Endogenous Fertility," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 77(1), pages 154-187.
    4. Yang-Ming Chang, 2012. "Strategic transfers, redistributive fiscal policies, and family bonds: a micro-economic analysis," Journal of Population Economics, Springer;European Society for Population Economics, vol. 25(4), pages 1481-1502, October.
    5. Alessandro Cigno & Annalisa Luporini, 2011. "Optimal Family Policy in the Presence of Moral Hazard when the Quantity and Quality of Children are Stochastic," CESifo Economic Studies, CESifo Group, vol. 57(2), pages 349-364, June.
    6. Michele Boldrin & Ana Montes, 2009. "Assessing the efficiency of public education and pensions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 22(2), pages 285-309, April.
    7. Birchenall, Javier A. & Soares, Rodrigo R., 2009. "Altruism, fertility, and the value of children: Health policy evaluation and intergenerational welfare," Journal of Public Economics, Elsevier, vol. 93(1-2), pages 280-295, February.
    8. Richard C. Barnett & Joydeep Bhattacharya & Mikko Puhakka, 2018. "Private versus public old-age security," Journal of Population Economics, Springer;European Society for Population Economics, vol. 31(3), pages 703-746, July.
    9. Ana Fernandes, 2011. "Altruism, labor supply and redistributive neutrality," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1443-1469, October.
    10. Gil Epstein, 2006. "The political economy of population economics," Journal of Population Economics, Springer;European Society for Population Economics, vol. 19(2), pages 255-257, June.
    11. Ermisch, John, 2006. "Fairness in the family: implications for parent-adult child interactions," ISER Working Paper Series 2006-13, Institute for Social and Economic Research.
    12. Alessandro Cigno & Annalisa Luporini, 2006. "Optimal Policy Towards Families with Different Amounts of Social Capital, in the Presence of Asymmetric Information and Stochastic Fertility," CESifo Working Paper Series 1664, CESifo.
    13. Wolff, François-Charles, 2006. "Les transferts ascendants au Bangladesh, une décision familiale?," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 271-316, mars-juin.
    14. Cellarier, Laurent L., 2021. "Is landownership a ladder out of poverty?," World Development, Elsevier, vol. 146(C).

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    More about this item

    Keywords

    intergenerational cooperation; family; fertility; saving; private transfers; education; child benefits; pensions; self-enforcing constitutions; direct democracy; representative democracy; constitutions;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • D10 - Microeconomics - - Household Behavior - - - General
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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