Author
Philippe Michel
Other affiliations: University of the Mediterranean, Institut Universitaire de France
Bio: Philippe Michel is an academic researcher from Centre national de la recherche scientifique. The author has contributed to research in topics: Overlapping generations model & Fiscal policy. The author has an hindex of 9, co-authored 15 publications receiving 359 citations. Previous affiliations of Philippe Michel include University of the Mediterranean & Institut Universitaire de France.
Papers
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TL;DR: In this paper, the authors construct an overlapping generations model of pollution externality in which individuals are altruistically linked to their offspring as in Barro (1974), and show that steady-state consumption may be a decreasing function of the intergenerational degree of altruism.
Abstract: We construct an overlapping generations model of pollution externality in which individuals are altruistically linked to their offspring as in Barro (1974). It is shown that steady-state consumption may be a decreasing function of the intergenerational degree of altruism. Despite individuals' altruism, the competitive equilibrium is not optimal. We thus study the social optimum and show that it can be decentralized.
81 citations
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TL;DR: In this article, an overlapping generations model of pollution externality wherein individ- uals are altruistically linked to their offspring as in Barro (1974) was constructed and it was shown that steady-state consumption can be a decreasing function of the intergenerational degree of altruism.
Abstract: This paper constructs an overlapping generations model of pollution externality wherein individ- uals are altruistically linked to their offspring as in Barro (1974). It is shown that steady-state consumption can be a decreasing function of the intergenerational degree of altruism. Despite individuals’ altruism, the competitive equilibrium is not optimal. We thus study the social optimum and prove that it can be decentralised.
76 citations
TL;DR: In this paper, the authors examined the long-run behavior of an overlapping generations model with a population consisting of altruistic and non-altruistic agents, and studied the effect of fiscal policy on aggregate capital accumulation and on the welfare of both types of agents.
Abstract: This paper examines the long-run behavior of an overlapping generations model with a population consisting of altruistic and nonaltruistic agents. It also studies the effect of fiscal policy on aggregate capital accumulation and on the welfare of both types of agents. It shows that an increase in the relative number of nonaltruists is Pareto-improving in the steady state. It also shows that the introduction of public debt or unfunded social security has no effect on the longrun equilibrium but implies a transfer of resources from the nonaltruistic to the altruistic agents. Finally, it indicates that inheritance taxation hurts not only the altruists but also the nonaltruists.
52 citations
TL;DR: In this article, the authors study the distribution of wealth in an economy with infinitely lived families, where individual generations of each family may or may not be altruistic, represented as a preference shock which follows a firstorder Markov process within each family.
41 citations
TL;DR: This article showed that a pay-as-you-go social security is neutral but not a public debt, which leads to interesting fiscal policy conclusions less clearcut and more realistic than those obtained with the two previous standard OLG models.
Abstract: The idea of family altruism is that parents care only about their children's income and not about the use of this income made by the children. First, we establish dynamical properties which place the OLG model with family altruism halfway between the model with pure life-cyclers (Diamond (1965)) and the one with dynastic altruism (Barro (1974)). Then, we show that this concept leads to interesting fiscal policy conclusions less clear-cut and more realistic than those obtained with the two previous standard OLG models: a pay as you go social security is neutral but not a public debt.
28 citations
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TL;DR: This article reviewed four well-known theoretical models of private bequest behavior, notes their differing implications for public policy, and discusses a way of empirically dis- criminating among them, and implements the test with micro data from Sweden (LLS) and the U.S. (PSID).
166 citations
TL;DR: In this article, an OLG model is presented in which life expectancy and environmental quality dynamics are jointly determined, in which agents may invest in environmental care, depending on how much they expect to live.
163 citations
TL;DR: In this paper, the optimality of agglomeration in a two-region economy with skilled/mobile and unskilled/immobile workers was investigated and it was shown that competitive lobbying on factor mobility by the two groups of workers sustains the second best optimum.
154 citations
153 citations
TL;DR: In this paper, the authors studied the design of the optimal public policy in a two-period OLG model where longevity is influenced positively by health expenditures, but negatively by pollution due to production.
Abstract: Whereas existing OLG models with endogenous longevity neglect the impact of environmental quality on mortality, this paper studies the design of the optimal public policy in a two-period OLG model where longevity is influenced positively by health expenditures, but negatively by pollution due to production. It is shown that if agents, when choosing how much to spend on health, do not internalize the impact of their decision on environmental quality (i.e. the space available for each person), the decentralization of the social optimum requires a tax not only on capital income (to internalize the pollution externality), but, also, on health spending (to internalize the congestion externality). We also examine the second-best policy under a limited set of taxation instruments, and explore its sensitivity to the pollution process and to individual preferences.
111 citations