IIOP JOURNAL OF POLITICAL ECONOMY indirectly implying a concern for the endowment of a member of generation i+ I For present purposes, it is convenient to assume that the utility of a member of generation i depends solely on own two-period consumption cI and ci, and on the attainable utility of his immediate descendant, Ui+ I The asterisk denotes the maximum value of utility, conditional on giver values of endowment and prices. Hence, the utility function for a member f the ith generation has the form U;=U4(c,cU*1) Subsequently, I consider the implications of entering the attainable utility of a member of the previous generation, Ui-I, as an additional ent Each member of generation I determines his allocation of resources to maximize U,, subject to equations (1)-(4)and to the inequality conditions,(ci, ca, 4920 for all i. The key restriction here is that the bequest to the member of the next generation cannot be negative. The choice of bequest, subject to this restriction, takes o v1, and the chain of Ai on generation 2's resources, the impact of U> or dependence of U2 on U3, of U3 on U4, etc. The solution to this problem will take the general for c"=c(A+A8,,r) (A1+A8-c)=A(4+A8,c,r) Similarly, for members of generation 2(and, more generally, for members of any generation i 22), the solution would take the form c2= c2(A1, w,r), Ai c=c(42+AB,c,r), (A2+A-c2)=A2(4 A member of get with the at generation i can attach a ce of his descendant. further it indiffer pposed that hich makes it comparable to cl and f in terms of generating U, in the form of ca rface dependent preferences in Becker(1974, sec. 3.A I have not imposed the condition, A120, so that young individuals are allowed issue interest-bearing debt on themselves. Ifissued, these debts are assumed to be perfec substitutes for equity capital. These debts correspond to the consumption loans which have been discussed by Samuelson (1958)