Family attention care and transfers

Jellal, Mohamed (2014): Family attention care and transfers.

Abstract

In this paper, we examine the pure exchange motive for intergenerational transfers within the family. We consider a model where a parent offers a financial transfer in exchange for the care services of the child. Using a Stackelberg game, we study the optimal attention care-money contract between the generations. We prove that the amount of gift received may be either positively or negatively related with the child's income. In addition, the relationship between the two variables is non linear and affected by the parent's degree of risk aversion. This non linearity, which has been largely neglected to date in empirical analyses, may explain why the exchange transfer motive has received little support in developed countries

• Item Type: MPRA Paper
• Language: English
• Keywords: Family, Inter Generational Transfers, Filial Exchange Attention, Care giving
• Subjects: D - Microeconomics > D1 - Household Behavior and Family Economics; D - Microeconomics > D3 - Distribution > D31 - Personal Income, Wealth, and Their Distributions; J - Labor and Demographic Economics > J1 - Demographic Economics; J - Labor and Demographic Economics > J1 - Demographic Economics > J14 - Economics of the Elderly ; Economics of the Handicapped ; Non-Labor Market Discrimination; J - Labor and Demographic Economics > J1 - Demographic Economics > J19 - Other

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