Journal of Evolutionary Economics

, Volume 27, Issue 5, pp 1205–1220 | Cite as

Global convergence in an overlapping generations model with two-sided altruism

  • Takaaki Aoki
  • Kazuo Nishimura
Regular Article


We study the evolutionary dynamics of an overlapping generations economy with two-sided altruism, where each generation cares about the utilities of its parental generation, its offspring, and its own. We assume that the young and old generations in each period act jointly, as a central planner. We then introduce the concepts of a two-sided altruistic path and a two-sided altruistic stationary path. Then, we go on to prove that the former always converges to the latter, in the two-sided altruistic model. This stationary capital level is higher than the steady-state level in the model with a constant discount factor.


Two-sided altruism Global convergence Euler equation Principle of optimality 

JEL classification

C61 D91 O41 



We thank the editor and two anonymous referees for helpful comments and suggestions. We also thank Sadao Kanaya for the useful conversations during the initial stage of this research. This work was supported by the Japan Society for the Promotion of Science, Grants-in-Aid for Research #15H05729 and #16H0233598.

Compliance with ethical standards


This study is funded by Japan Society for the Promotion of Science (Grants-in-Aid for Research #15H05729 and #16H0233598).

Conflict of interest

The authors declare that they have no conflict of interest.


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Copyright information

© Springer-Verlag GmbH Germany 2017

Authors and Affiliations

  1. 1.Institute of Economic ResearchKyoto UniversityKyotoJapan
  2. 2.Research Institute for Economics & Business AdministrationKobe UniversityKobeJapan
  3. 3.Research Institute of EconomyTrade and IndustryTokyoJapan
  4. 4.Santa Fe InstituteSanta FeUSA

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