a. What do we mean by degree of intergenerational income ela…
a. What do we mean by degree of intergenerational income elasticity? Use the Bowles and Gintis’ equation in Wolff’s text to explain this. ( 5 points) b. “A person is more likely to be rich if parents are also rich.” Explain this with a model of households from Rycroft with parents (rich and poor) being completely altruistic in raising their children. (5 points)