Jellal, Mohamed and Wolff, François Charles (2003): Leaving home as a self-selection device. Published in: ECONOMICA No. 70, 423-438
Download (2MB) | Preview
We develop a model of intergeneratioal coresidence and transfers within the family in a setting of asymmetric information. Following an exchange motive altruistic parents receive services from their children, who may make them financial gifts in return. However, parents do not know the privacyc ost to children of home-sharing .Hence they make additional transfers in order to discipline their children and give them incentives to reveal their true privacy cost. We show that only children who stay at the parental home receive an informational rent, and that this rent is greaterf or recipients with a low privacy cost.
|Item Type:||MPRA Paper|
|Original Title:||Leaving home as a self-selection device|
|Keywords:||Family Exchanges,Transfers, Information, Co-residence|
|Subjects:||D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design
D - Microeconomics > D1 - Household Behavior and Family Economics
|Depositing User:||Mohamed Jellal|
|Date Deposited:||03. May 2012 07:46|
|Last Modified:||28. Sep 2015 11:36|
ALTONJI,J . G., HAYASHI,F . and KOTLIKOFF L, . J. (1997). Parental altruism and inter vivos transfers: theory and evidence. Journal of Political Economy, 105, 1121-66.
ATTIAS-DONFUT ,C, . and ROZENKIER ,A . (1996). The lineage-structured social networks of older people in France. In H. Litwin (ed.), The Social Networks of Older People. London: Praeger.
BECKER, G. S. (1991). A Treatise on the Family. Cambridge, Mass.: Harvard University Press.
BERNHEIMB, . D., SHLEIFERA, . and SUMMERS,L . H. (1985). The strategic bequest motive. Journal of Political Economy, 93, 1045-76.
BLINDER, A. S. (1988). Comments on Chapter 1 and Chapter 2. In D. Kessler and A. Masson (eds.), Modelling the Accumulation and Distribution of Wealth. Oxford: Clarendon Press.
BRUCEN, . and WALDMANM, . (1990).T he Rotten-Kidt heoremm eets the Samaritan's dilemma. Quarterly Journal of Economics, 105, 155-65.
CHAMI, R. (1996). King Lear's dilemma: precommitment versus the last word. Economics Letters, 52, 171-6.
- (1998). Private income transfers and market incentives. Economica, 65, 557-80.
CIGNO, A. (1993). Intergenerational transfers without altruism: family, market and state. European Journal of Political Economy, 9, 505-18.
-, LUPORINI, A. and PETTINI, A. (2000). Transfers to families with children as a principalagent problem. Mimeo, University of Florence.
Cox, D. (1987). Motives for private income transfers. Journal of Political Economy, 95, 508-46.
- (1996). Comment on James Davies, Explaining intergenerational transfers. In P. L. Menchik (ed.), Household and Family Economics. Boston: Kluwer Academic.
- and RANK, M. R. (1992). Inter vivos transfers and intergenerational exchange. Review of Economics and Statistics, 74, 305-14.
CREMER ,H, . and PESTIEAU P, . (1996). Bequests as a heir discipline device. Journal of Population Economics, 9, 405-14.
- and - (1998). Delaying inter vivos transmissions under asymmetric information. Southern Economic Journal, 65, 322-30.
DUNN, T. A. and PHILLIPSJ, . W. (1998). Intergenerational coresidence and children's incomes.Mimeo, Maxwell Center for Demography and Economics of Aging.
ERMISCHJ, . F. (1996). Parental support for human capital: investment by young adults. CEPR Discussion Paper no. 1536, London School of Economics.
ERMISCHJ,F and DI SALVO P. (1997). The economic determinants of young people's household Formation.Economica, 64, 627-44.
FERNANDES A . (2000). Altruism with endogenous labor supply. Mimeo, CEMFI.
HAO, L., HOTZ, V. J. and JIN, G. Z. (2000). Games daughters and parents play: teenage childbearing, parental reputation, and strategic transfers. NBER Working Paper no. 7670.
KESSLER, D. and MASSON, A. (1989). Bequest and wealth accumulation: are some pieces of the puzzle missing? Journal of Economic Perspectives, 3, 141-52.
KONRAD,K . A., KOlNEMUNDH, ., LOMMERUDK, . E. and ROBLEDOJ, . R. (2003). Geography of the family. American Economic Review, forthcoming.
KOTLIKOFF ,L, . J. and SUMMERSA, . (1981). The role of intergenerational transfers in aggregate capital accumulation. Journal of Political Economy, 89, 706-32.
LAFERRERE A, . (1999). Intergenerational transmission models: a survey. Geneva Papers on Risk and Insurance, 24, 2-26.
LAFFONT, J. J. and TIROLE, J. (1993). A Theory of Incentives in Procurement and Regulation. Cambridge, Mass. MIT Press.
LINDBECK A, . and WEIBULLJ, . W. (1988).A ltruisma and time consistencyt:h e economics of fait accompli. Journal of Political Economy, 96, 1165-82.
MCELROYM, . B. (1985).The joint determination of household membership and market work:the case of young men. Journal of Labor Economics, 3, 293-315.
MODIGLIANI.F, (1988). The role of intergenerational transfers and life cycle saving in the accumulation of wealth. Journal of Economic Perspectives, 2, 15-40.
ROSENZWEIG ,M,R. and WOLPIN,K . I. (1993). Intergenerational support and the life-cycle investments, coresidence, and intergenerational financial transfers. Journal of Labor Economics, 11, 84-112.
TIROLE, J. (1999). Incomplete contracts: where do we stand? Econometrica, 67, 741-81.
VILLANUEVA ,E . (2001). Parental altruism under imperfect information: theory and evidence.Mimeo, University of Pompeu Fabra.
WOLFF F. C. (1999). Altruisme et cor6sidence en France. Cahiers Economiques de Bruxelles, 164,457-88. (2000).
WOLFF F.C (2000).Transfers mon6taires inter vivos et cycle de vie. Revue Economique, 51, 1419-52.