title: The old-age security hypothesis revisited.
abstract: "Children's altruism toward parents is allowed in a two-overlapping-generations model with endogenous fertility.  Parents raise children because, when retired, they expect gifts from their children who are essentially a capital good.  Individuals' behavior between generations is examined by analyzing a Nash equilibrium, which is then compared with a social planner's optimal allocation.  The pay-as-you-go public pension program is viewed as the optimal gifts from the optimal allocation when the latter is implemented.  The effect on fertility of the introduction of a capital market is also analyzed.  The validity of the old-age security hypothesis is shown to depend on the parameters of utility and cost functions."
mesh_terms: D001519:Behavior; D002648:Child; D003362:Cost-Benefit Analysis; D003657:Decision Making; D003710:Demography; D004467:Economics; D005069:Evaluation Studies as Topic; D005191:Family Characteristics; D005298:Fertility; D018803:Models, Economic; D008962:Models, Theoretical; D009826:Old Age Assistance; D011153:Population; D011157:Population Dynamics; D012106:Research
keywords: Behavior; Child Worth; Cost Benefit Analysis; Decision Making; Demographic Factors; Economic Factors; Economic Model; Evaluation; Family And Household; Family Characteristics; Fertility; Intergenerational Transfers; Microeconomic Factors; Models, Theoretical; Old Age Security; Population; Population Dynamics; Quantitative Evaluation; Research Methodology; Utility Theory; World