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On the Interplay Between Intergenerational Transfers and Natural Resources

Author

Listed:
  • Roberto Iacono

    (Norwegian University of Science and Technology (NTNU))

Abstract

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.

Suggested Citation

  • Roberto Iacono, 2014. "On the Interplay Between Intergenerational Transfers and Natural Resources," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 12(2), pages 167-199.
    • Handle: RePEc:seb:journl:v:12:y:2014:i:2:p:167-199
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    File URL: http://www.asecu.gr/Seeje/issue23/issue23-iacono.pdf
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    References listed on IDEAS

    as
    1. Michele Boldrin & Ana Montes, 2005. "The Intergenerational State Education and Pensions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 72(3), pages 651-664.
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    3. Robert M. Solow, 1974. "The Economics of Resources or the Resources of Economics," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 12, pages 257-276, Palgrave Macmillan.
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    6. Antonio Rangel, 2003. "Forward and Backward Intergenerational Goods: Why Is Social Security Good for the Environment?," American Economic Review, American Economic Association, vol. 93(3), pages 813-834, June.
    7. repec:bla:scandj:v:93:y:1991:i:4:p:585-91 is not listed on IDEAS
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    9. Partha Dasgupta & Geoffrey Heal, 1974. "The Optimal Depletion of Exhaustible Resources," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(5), pages 3-28.
    10. Mourmouras, Alex, 1993. "Conservationist government policies and intergenerational equity in an overlapping generations model with renewable resources," Journal of Public Economics, Elsevier, vol. 51(2), pages 249-268, June.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Overlapping generations; intergenerational transfers; natural resources; endogenous growth;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development

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