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Geography of the Family

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Author Info
Kai A. Konrad
Harald Künemund
Kjell Erik Lommerud
Julio R. Robledo

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Abstract

We study the residential choice of siblings who are altruistic towards their parents. The firstborn child's location choice influences the behavior of the second-born child and can shift some of the burden of providing care for the parents from one child to the other. These strategic considerations lead to an equilibrium location pattern with firstborn children locating further away from their parents than second-born children. We also analyze the location choices empirically using German data. These data confirm our theoretical predictions. (JEL H41, J10)

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File URL: http://hdl.handle.net/10.1257/00028280260344551
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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 92 (2002)
Issue (Month): 4 (September)
Pages: 981-998
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Handle: RePEc:aea:aecrev:v:92:y:2002:i:4:p:981-998

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References listed on IDEAS
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  1. Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1985. "The Strategic Bequest Motive," Journal of Political Economy, University of Chicago Press, vol. 93(6), pages 1045-76, December. [Downloadable!] (restricted)
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  2. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December. [Downloadable!] (restricted)
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  3. Cox, Donald & Rank, Mark R, 1992. "Inter-vivos Transfers and Intergenerational Exchange," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 305-14, May. [Downloadable!] (restricted)
  4. Konrad, Kai A & Lommerud, Kjell Erik, 1995. " Family Policy with Non-cooperative Families," Scandinavian Journal of Economics, Blackwell Publishing, vol. 97(4), pages 581-601, December.
  5. Laurence J. Kotlikoff & John N. Morris, 1989. "How Much Care Do the Aged Receive from Their Children? A Bimodal Picture of Contact and Assistance," NBER Working Papers 2391, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, . "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," IPR working papers 95-22, Institute for Policy Resarch at Northwestern University.
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  7. Ted Bergstrom, 1989. "Love and Spaghetti, The Opportunity Cost of Virtue," University of California at Santa Barbara, Economics Working Paper Series 1989B, Department of Economics, UC Santa Barbara. [Downloadable!]
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  8. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December. [Downloadable!] (restricted)
  9. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May. [Downloadable!] (restricted)
  10. Topel, Robert H, 1991. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," Journal of Political Economy, University of Chicago Press, vol. 99(1), pages 145-76, February. [Downloadable!] (restricted)
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  11. Groot, Wim & Verberne, Maartje, 1997. "Aging, Job Mobility, and Compensation," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 380-403, July. [Downloadable!] (restricted)
  12. Laurence J. Kotlikoff, 1992. "Economic Exchange and Support Within U.S. Families," NBER Working Papers 4080, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Cited by:
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  1. Francois-Charles Wolff & Augustin de Coulon, 2005. "Immigrants at Retirement: Stay/Return or Va-et-Vient," CEP Discussion Papers dp0691, Centre for Economic Performance, LSE. [Downloadable!]
  2. Midori Wakabayashi & Charles Yuji Horioka, 2006. "Is the Eldest Son Different? The Residential Choice of Siblings in Japan," ISER Discussion Paper 0674, Institute of Social and Economic Research, Osaka University. [Downloadable!]
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  3. François-Charles Wolff & Ralitza Dimova, 2006. "How Do Migrants Care for Their Elderly Parents? Time, Money and Location," Swiss Journal of Economics and Statistics (SJES), Special Issues, Swiss Society of Economics and Statistics (SSES), vol. 142(S (specia), pages 123-130. [Downloadable!]
  4. Shiko Maruyama, 2009. "Estimating Sequential-move Games by a Recursive Conditioning Simulator," Discussion Papers 2009-01, School of Economics, The University of New South Wales. [Downloadable!]
  5. Fevang, Elisabeth & Kverndokk, Snorre & Roed, Knut, 2008. "Informal Care and Labor Supply," IZA Discussion Papers 3717, Institute for the Study of Labor (IZA). [Downloadable!]
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  6. Dasgupta, Indraneel & Maitra, Pushkar & Mukherjee, Diganta, 2008. "‘Arranged’ Marriage, Co-Residence and Female Schooling: A Model with Evidence from India," IZA Discussion Papers 3336, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Stephan Kroll & Todd Cherry & Jason Shogren, 2007. "The impact of endowment heterogeneity and origin on contributions in best-shot public good games," Experimental Economics, Springer, vol. 10(4), pages 411-428, December. [Downloadable!] (restricted)
    Other versions:
  8. repec:ese:iserwp: is not listed on IDEAS
  9. Roméo Fontaine & Agnès Gramain & Jérôme Wittwer, 2009. "Providing care for an elderly parent: interactions among siblings?," Health Economics, John Wiley & Sons, Ltd., vol. 18(9), pages 1011-1029. [Downloadable!]
  10. Liliana E. Pezzin & Robert A. Pollak & Barbara S. Schone, 2006. "Efficiency in Family Bargaining: Living Arrangements and Caregiving Decisions of Adult Children and Disabled Elderly Parents," NBER Working Papers 12358, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Karsten Hank, 2005. "Spatial Proximity and Contacts between Elderly Parents and Their Adult Children: A European Comparison," MEA discussion paper series 05098, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
  12. Augustin de Coulon & François-Charles Wolff, 2006. "The Location of Immigrants at Retirement: Stay/Return or ‘Va-et-Vient’?," IZA Discussion Papers 2224, Institute for the Study of Labor (IZA). [Downloadable!]
  13. Yang-Ming Chang, 2009. "Strategic altruistic transfers and rent seeking within the family," Journal of Population Economics, Springer, vol. 22(4), pages 1081-1098, October. [Downloadable!] (restricted)
  14. Karsten Hank, 2005. "Spatial Proximity and Contacts between Elderly Parents and Their Adult Children: A European Comparison," MEA discussion paper series 05098, Mannheim Research Institute for the Economics of Aging (MEA), University of Mannheim. [Downloadable!]
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