EconPapers    
Economics at your fingertips  
 

Family ties, incentives and development: A model of coerced altruism

Ingela Alger and Jörgen Weibull

No 07-10, Carleton Economic Papers from Carleton University, Department of Economics

Abstract: We analyze the effects of family ties on the incentives for production of effort, where family ties are defined as a mixture of true and coerced altruism between family members. We model families as pairs of siblings. Each sibling exerts effort in order to obtain output under uncertainty. A social norm dictates that a sibling with a high output must share a specified amount of this output with his sibling, if the latter is output is low. Siblings may be truly altruistic towards each other, but not to a larger degree than dictated by the social norm. We compare such informal family insurance with actuarially fair formal insurance.

Keywords: altruism; coerced altruism; family ties; insurance; moral hazard. (search for similar items in EconPapers)
JEL-codes: D02 D13 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2007-10-24, Revised 2008
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Published: Revised version in Arguments for a Better World: Essays in Honor of Amartya Sen, Volume II: Society, Institutions, and Development, ed. Kaushik Basu and Ravi Kanburn, Oxford University Press, 2008

Downloads: (external link)
http://www1.carleton.ca/economics/research/working ... apers-cep-2001-2010/
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www1.carleton.ca:80 (No such host is known. )

Related works:
Working Paper: Family ties, incentives and development: a model of coerced altruism (2007) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:car:carecp:07-10

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Carleton Economic Papers from Carleton University, Department of Economics C870 Loeb Building, 1125 Colonel By Drive, Ottawa Ontario, K1S 5B6 Canada.
Bibliographic data for series maintained by Court Lindsay ().

 
Page updated 2024-05-22
Handle: RePEc:car:carecp:07-10