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By Stark O.

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Extra resources for Altruism and beyond

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A child born in this adaptive state will then face exactly the same planning horizon and thereby the same incentive structure as a child born in the early years of a short parental life expectancy. Consequently, our model will not bite. We know though of no fertility model nor any empirical study that predicts or produces such possible full adjustment. And if anything less than full adjustment takes place, our sign hypothesis clearly remains unchanged. Moreover, in the present chapter we model the behavior of the offspring, not the parent.

More concretely, though, our model predicts that in a country such as India, where typically daughters do not inherit the family's land but sons do, a rising life expectancy of the parents ± even if interpreted by the children as a signal that their own life expectancy will be longer ± has a stronger effect on human capital formation by boys (two effects are operative) than by girls. Furthermore, consider the case of societies characterized by ``perfect primogeniture'' ± the eldest son receiving all the bequest.

8) are replaced by VF …CF † ˆ CF …1X7H † VS …CS † ˆ CS …1X8H † and for any 0 `  ` 1. 12) follows through as before, except that the optimal consumption ratios now appear as 2 3 ~F C 1 À F ˆ ~ F CS …1X10H † F and 2 3 ~F C ~S C S ˆ S Y 1 À S 21 …1X11H † Altruism and beyond ~F ˆ C1À and C ~S ˆ C1À . 1, except that for CF CS . ~F C ~S C substitutes Two remarks are in order. First, the preceding four results are not speci®c to logarithmic utility functions. They hold under an alternative (exponential) speci®cation of the utility function.

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