Altruistic parents impact economic growth through human capital and bequests
The article explores how growth and efficiency are related in an economy where parents pass on education and physical assets to their children. It shows that when education has positive effects on others, the desire to leave physical assets to offspring may not be important. The research suggests that the optimal growth rate is lower than the competitive rate when the economy is limited by bequests and education's positive effects are weak. Fiscal policy experiments were conducted in different economic scenarios.