Leaving home as a self-selection device

Mohamed Jellal () and François-Charles Wolff

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: Family Exchanges; Transfers; Information; Co-residence (search for similar items in EconPapers)
JEL-codes: D1 D82 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:38528

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