Aspirations, habit formation, and bequest motive

Economic Journal

Volumn 117, Issue 520, 2007, Pages 813-836

  Alonso Carrera, Jaime ^a,b,c   Caballé, Jordi ^a,b,c   Raurich, Xavier ^a,b,c  

^a UNIVERSITY OF VIGO   (Spain)

^b UNIVERSITAT AUTÒNOMA DE BARCELONA   (Spain)

^c UNIVERSITY OF BARCELONA   (Spain)

Author keywords

[No Author keywords available]

Indexed keywords

CAPITAL; CONSUMPTION BEHAVIOR; STANDARD OF LIVING;

EID: 34249985453     PISSN: 00130133     EISSN: 14680297     Source Type: Journal    
DOI: 10.1111/j.1468-0297.2007.02051.x     Document Type: Article

References (42)

1. Abel A. (1986). 'Capital accumulation and uncertain lifetimes with adverse selection', Econometrica, vol. 54, pp. 1079-97.
2. Abel, A. (1987). 'Operative gift and bequest motives', American Economic Review, vol. 77, pp. 1037-47.
3. Abel, A. (1990). 'Asset prices under habit formation and catching up with the Joneses', American Economic Review, vol. 80, pp. 38-42.
4. Abel, A. (1999). 'Risk premia and term premia in general equilibrium', Journal of Monetary Economics, vol. 43, pp. 3-33.
5. Abel, A. (2005). 'Optimal taxation when consumers have endogenous benchmark levels of consumption', Review of Economic Studies, vol. 75, pp. 21-42.
6. Aiyagari, S.R. (1987). 'Intergenerational linkages and government budget policies', Federal Reserve Bank of Minneapolis Quarterly Review, vol. 11, pp. 14-23.
7. Alonso-Carrera, J., Caballé, J. and Raurich X. (2004). 'Consumption externalities, habit formation and equilibrium efficiency', Scandinavian Journal of Economics, vol. 106, pp. 231-51.
8. Alonso-Carrera, J., Caballé, J. and Raurich, X. (2005). 'Growth, habit formation, and catching up with the Joneses', European Economic Review, vol. 49, pp. 1665-91.
9. Artige, L., Camacho, C. and de la Croix, D. (2004). 'Wealth breeds decline: Reversals of leadership and consumption habits', Journal of Economic Growth, vol. 9, pp. 423-49.
10. Barro, R.J. (1974). 'Are government bonds net wealth?', Journal of Political Economy, vol. 82, pp. 1095-117.
11. Becker, G. (1992). 'Habits, addictions, and traditions', Kyklos, vol. 45, pp. 327-45.
12. Boyd, R. and Richerson, P. (1985). Culture and the Evolutionary Process, Chicago: University of Chicago Press.
13. Caballé, J. (1995). 'Endogenous growth, human capital, and bequest in a life-cycle model', Oxford Economic Papers, vol. 47, pp. 156-81.
14. Caballé, J. (1998). 'Growth effects of fiscal policy under altruism and low elasticity of intertemporal substitution', Economic Journal, vol. 108, pp. 91-104.
15. Carrasco, R., Labeaga, J.M. and López J.D. (2005). 'Consumption and habits: Evidence from panel data', Economic Journal, vol. 115, pp. 144-65.
16. Carroll, C., Overland, J. and Weil, D. (1997). 'Comparison utility in a growth model', Journal of Economic Growth, vol. 2, pp. 339-67.
17. Carroll, C., Overland, J. and Weil, D. (2000). 'Saving and growth with habit formation', American Economic Review, vol. 90, pp. 341-55.
18. Cass, D. (1972). 'On capital overaccumulation in the aggregate, neoclassical model of economic growth: A complete characterization', Journal of Economic Theory, vol. 4, pp. 200-23.
19. Cavalli-Sforza, L. and Feldman, M. (1981). Cultural Transmission and Evolution: A Quantitative Approach, Princeton: Princeton University Press.
20. Cox, D. (1987). 'Motives for private transfers', Journal of Political Economy, vol. 95, pp. 508-46.
21. Cox, D., Ng, S. and Waldkirch, A. (2004). 'Intergenerational linkages in consumption behavior', Journal of Human Resources, vol. 32, pp. 355-81.
22. de la Croix, D. (1996). 'The dynamics of bequeathed tastes', Economics Letters, vol. 53, pp. 89-96.
23. de la Croix, D. (2001). 'Growth dynamics and education spending: The role of inherited tastes and abilities', European Economic Review, vol. 45, pp. 1415-38.
24. de la Croix, D. and Michel P. (1999). 'Optimal growth when tastes are inherited', Journal of Economic Dynamics and Control, vol. 23, pp. 519-37.
25. de la Croix, D. and Michel P. (2001). 'Altruism and self-restraint', Annales d'Economie et de Statistique, vol. 63-64, pp. 233-60.
26. de la Croix, D. and Urbain, J.P. (1998). 'Intertemporal substitution in import demand and habit formation', Journal of Applied Econometrics, vol. 13, pp. 589-612.
27. Diamond, P.A. (1965). 'National debt in a neoclassical growth model', American Economic Review, vol. 55, pp. 1126-50.
28. Doepke, M. and Zilibotti, F. (2005). 'Patience capital, occupational choice, and the spirit of capitalism', CEPR Discussion Paper No. 5106.
29. Dynan, K.E., Skinner, J. and Zeldes, S.P. (2002). 'The importance of bequest and life-cycle saving in capital accumulation: A new answer', American Economic Review (Papers and Proceedings), vol. 92, pp. 274-8.
30. Gale, W.G. and Scholz, J.K. (1994). 'Intergenerational transfers and the accumulation of wealth', Journal of Economic Perspectives, vol. 8, pp. 145-61.
31. Galor, O. and Ryder, H. (1989). 'Existence, uniqueness and stability of equilibrium in overlapping generations model with productive capital', Journal of Economic Theory, vol. 49, pp. 360-75.
32. Hurd, M.D. (1987). 'Savings of the elderly and desired bequests', American Economic Review, vol. 77, pp. 298-312.
33. Jellal, M. and Wolff, F.C. (2002). 'Altruistic bequests with inherited tastes', International Journal of Business and Economics, vol. 1, pp. 95-113.
34. Kotlikoff, L. and Summers, L.H. (1981). 'The role of intergenerational transfers in aggregate capital accumulation', Journal of Political Economy, vol. 89, pp. 706-32.
35. Lahiri, A. and Puhakka, M. (1998). 'Habit persistence in overlapping generations economies under pure exchange', Journal of Economic Theory, vol. 78, pp. 176-88.
36. Laitner, J.P. (1988). 'Bequests, gifts and social security', Review of Economic Studies, vol. 55, pp. 275-99.
37. Laitner, J.P. and Juster, F.T. (1996). 'New evidence on altruism: A study of TIAA-CREF retirees', American Economic Review, vol. 86, pp. 893-908.
38. Ljungqvist, L. and Uhlig, H. (2000). 'Tax policy and aggregate demand management under catching up with the Joneses', American Economic Review, vol. 90, pp. 356-66.
39. Mehra, R. and Prescott, E.C. (1985). 'The equity premium: A puzzle', Journal of Monetary Economics, vol. 15, pp. 145-61.
40. Weil, P. (1987). 'Love thy children: Reflections on the Barro Debt Neutrality theorem', Journal of Monetary Economics, vol. 19, pp. 377-91.
41. Wendner, R. (2002). 'Capital accumulation and habit formation', Economics Bulletin, vol. 4, pp. 1-10.
42. Winder, C. and Palm, F. (1996). 'Stochastic implications of the life cycle consumption model under rational habit formation', Recherches Economiques de Louvain, vol. 62, pp. 403-12.