Intergenerational transfers in rural households: A game theoretical approach

Américo Mendes ()

No 3, Working Papers de Economia (Economics Working Papers) from Católica Porto Business School, Universidade Católica Portuguesa

Abstract: The household membership decision is viewed as a “research project” where the offspring invests in human and non human capital to influence the probability of finding an alternative to the parental household. The problem is formulated as a differential game between a selfish offspring and altruistic parents. The solution is consistent with facts” such as the “flexibility of inheritance systems” and the “generational fragmentation” of the family property when the economic opportunities expand outside the parental household.

Keywords: intergenerational transfers; rural households; game theory (search for similar items in EconPapers)
JEL-codes: J (search for similar items in EconPapers)
Pages: 15 pages
Date: 2007-04
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