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The Fetters of the Sib: Weber Meets Darwin

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  • Alger, Ingela

    ()
    (Carleton University)

  • Weibull, Jörgen

    ()
    (Dept. of Economics, Stockholm School of Economics)

Abstract

We analyze the effects of family ties on the incentives for productive effort. A family is modelled as a pair of altruistic siblings. Each sibling exerts effort to produce output under uncertainty and siblings may transfer output to each other. We show that altruism has a non-monotonic effect on effort. We study how this effect depends on "climate," the magnitude and volatility of returns to effort. We also analyze the evolutionary robustness of family ties and how this robustness depends on climate. We find that family ties will be stronger in milder climates than in harsher climates.

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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 682.

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Length: 41 pages
Date of creation: 13 Nov 2007
Date of revision:
Handle: RePEc:hhs:hastef:0682

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Keywords: altruism; family ties; moral hazard; evolutionary robustness;

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References

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Citations

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Cited by:
  1. Ingela Alger & Jörgen W. Weibul, 2007. "Kinship, Incentives and Evolution – revised version: Kinship, Incentives, and Evolution," Carleton Economic Papers 07-13, Carleton University, Department of Economics, revised 17 Sep 2010.
  2. Alger, Ingela & Weibull, Jörgen, 2007. "The Fetters of the Sib: Weber Meets Darwin," Working Paper Series in Economics and Finance 682, Stockholm School of Economics.
  3. Alger, Ingela & Weibull, Jörgen, 2007. "Family ties, incentives and development: a model of coerced altruism," Working Paper Series in Economics and Finance 681, Stockholm School of Economics.
  4. Ingela Alger & J�rgen W. Weibull, 2010. "Kinship, Incentives, and Evolution," American Economic Review, American Economic Association, vol. 100(4), pages 1725-58, September.

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