Parental altruism under imperfect information: Theory and evidence

Ernesto Villanueva

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: Can we reconcile the predictions of the altruism model of the family with the evidence on intervivos transfers in the US? This paper expands the altruism model by introducing e ?ort of the child and by relaxing the assumption of perfect information of the parent about the labor market opportunities of the child. First, I solve and simulate a model of altruism under imperfect information. Second, I use cross-sectional data to test a prediction of the model: Are parental transfers especially responsive to the income variations of children who are very attached to the labor market? The results suggest that imperfect information accounts for several patterns of intergenerational transfers in the US.

Keywords: Altruism; imperfect information; intervivos transfers (search for similar items in EconPapers)
JEL-codes: D19 D64 D82 H20 J14 (search for similar items in EconPapers)
Date: 2002-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Related works:
Working Paper: Parental altruism under imperfect information: theory and evidence (2015)
Working Paper: Parental altruism under imperfect information: Theory and evidence (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:650

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