Family Altruism and Incentives

@inproceedings{Gatti1999FamilyAA,
  title={Family Altruism and Incentives},
  author={Roberta Fagnani Gatti},
  year={1999}
}
The author builds on the altruistic model of the family, to explore the strategic interaction between altruistic parents, and selfish children, when children's efforts are endogenous. If there is uncertainty about the amount of income the children will realize, and if parents have imperfect information, the children have an incentive to exert little effort, and to rely on their parent's altruistically motivated transfers. Because of this, parents face a tradeoff between the insurance that… CONTINUE READING

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