On the Interplay between Intergenerational Transfers and Natural Resources
Journal article, Peer reviewed
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OriginalversjonSouth-Eastern Europe Journal of Economics. 2014, (2), 167-199.
This paper studies an overlapping generations model with selfish agents, natural resources and human capital externalities. The initial result is to quantify the economic effects of intergenerational transfers by comparing a complete markets allocation with transfers to an allocation without transfers due to incomplete markets. The core contribution is then to show that a higher resource regeneration rate boosts the effect of transfers on economic growth for both allocations, although it also implies a higher gap in growth performances between them. Finally, it is shown that transfers can be financed through a constant lump-sum tax relative to the output level.