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Asymmetry of Information within Family Networks

Joachim De Weerdt, Garance Genicot () and Alice Mesnard

Journal of Human Resources, 2019, vol. 54, issue 1, 225-254

Abstract: This paper studies asymmetry of information and transfers within 712 extended family networks from Tanzania. Using cross-reports on asset holdings, we construct measures of misperception of living standards among households within the same network. We contrast altruism, pressure, exchange, and risk sharing as motives to transfer in simple models with asymmetric information. Testing the model predictions in the data uncovers the active role played by recipients of transfers. Our findings suggest that recipients set the terms of the transfers, either by exerting pressure on donors or because they hold substantial bargaining power in their exchange relationships.

JEL-codes: D12 O12 O15 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.3368/jhr.54.1.0616.8023R1
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Related works:
Working Paper: Asymmetry of Information within Family Networks (2015) Downloads
Working Paper: Asymmetry of Information within Family Networks (2014) Downloads
Working Paper: Asymmetry of Information within Family Networks (2014) Downloads
Working Paper: Asymmetry of information within family networks (2014) Downloads
Working Paper: Asymmetry of Information within Family Networks (2014) Downloads
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