Economic growth, equilibrium welfare, and public goods provision with intergenerational altruism

This study examines the government policy of public goods provision and its effects on economic growth welfare under intergenerational altruism. The considers an endogenous model with altruistic overlapping generations. preferences current youth exhibit a future bias, thus, democratically elected governments are subject to this bias. optimal rule for supply bias differs from original Samuelson rule. Unlike standard without any rule, equilibrium rate is not independent size. Future gives young generations dynamic incentives invest more. With redistributive stimulate such certain conditions. Hence, size affects through intertemporal changes in their resource allocations. Moreover, effect provides nontrivial outcomes analysis. Our numerical analyses show superiority democratic nonbiased social planner.