文档库

最新最全的文档下载
当前位置:文档库 > Altruism and sustainability a framework for analysis

Altruism and sustainability a framework for analysis

Altruism and sustainability:

a framework for analysis?

Thierry Bréchet?and Stéphane Lambrecht?

January5,2004

Abstract

In this paper,we model an overlapping generations economy in which individuals are endowed with a renewable resource.This resource can be extracted at no cost by

the young households and provided to production.A joy-of-giving bequest motive

motivates the transfer of the unextracted resource to the heirs.We investigate the

sustainability and the intergenerational equity of equilibrium.We?nd that it is

always optimal for individuals to extract the resource in equilibrium as long as the

bequeathed resource is positive.In the long run,two outcome are possible.First the

resource stock may tend to vanish if the concern for the bequeathed resource is not

strong enough or if the population too large.Second,there may exist a sustainable

level of the resource if the concern for bequeathed resource is strong enough.At

that steady state,the economy replicates identically so that all generations face

the same opportunities.This may be seen as a criterion of sustainability and of

intergenerational equity.However,the economy may experience oscillations on the

way to the steady state equilibrium.Hence members of those generations appearing

on the transition path may experience lower utility than the previous generation and

the next one.

Keywords:overlapping generations,sustainability,altruism

JEL codes:D91;Q20;D64

?The research presented in this paper is part of the research program CLIMNEG2,?nanced by the Belgian O?ce for Scienti?c,Technical and Cultural A?airs.

?Lhoist Berghmans Chair,Center for Operations Research and Econometrics(CORE),UniversitéCatholique de Louvain,e-mail:brechet@core.ucl.ac.be

?Center for Operations reasearch and Econometrics(CORE),UniversitéCatholique de Louvain,Bel-gium and Groupe d’Etude”Modélisation Appliquéeàla Recherche en Sciences sociales”(GREMARS), UniversitéCharles-de-Gaulle Lille3,France;e-mail:lambrecht@core.ucl.ac.be