Altruism, Labor Supply and Redistributive Neutrality

, Forthcoming

Posted: 23 Mar 2000 Last revised: 9 Jun 2008

See all articles by Ana Fernandes

Ana Fernandes

University of Bern - Department of Economics

Date Written: February 2008

Abstract

This paper presents a model of familial altruism in which labor supply is chosen endogenously. The model is used to address the predictions of Ricardian Equivalence, both theoretical and empirical. It is argued that, to the extent that income variation in the data comes mostly from wage and effort changes, the empirical tests of neutrality are misspecified. Numerical estimates suggest that quantitatively important deviations from neutrality may be at work.

Keywords: Ricardian Equivalence, redistributive neutrality, altruism, endogenous labor supply, private information.

JEL Classification: D19, D64, D82, J22

Suggested Citation

Fernandes, Ana, Altruism, Labor Supply and Redistributive Neutrality (February 2008). , Forthcoming, Available at SSRN: https://ssrn.com/abstract=215088 or http://dx.doi.org/10.2139/ssrn.215088

Ana Fernandes (Contact Author)

University of Bern - Department of Economics ( email )

Schanzeneckstrasse 1
Bern, CH-3001
Switzerland

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Abstract Views
604
PlumX Metrics