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A Constitutional Theory of the Family

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  • Cigno, Alessandro

    ()
    (University of Florence)

Abstract

The paper re-examines the idea that a family can be viewed as a community governed by a self-enforcing constitution, and extends existing results in two directions. First, it identifies circumstances in which a constitution is renegotiation-proof. Second, it introduces parental altruism. The behavioural and policy implications are illustrated by showing the effects of public pensions and credit rationing. These implications are not much affected by whether altruism is assumed or not, but contrast sharply with the predictions of more conventional models.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1797.

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Length: 30 pages
Date of creation: Oct 2005
Date of revision:
Publication status: published in: Journal of Population Economics, 2006, 19 (2), 259-289
Handle: RePEc:iza:izadps:dp1797

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Related research

Keywords: saving; fertility; altruism; renegotiation-proofness; self-enforcing constitutions; families; transfers; attention; pensions; credit rationing;

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References

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  1. Gary S. Becker & Robert J. Barro, . "A Reformulation of the Economic Theory of Fertility," University of Chicago - Population Research Center, Chicago - Population Research Center 85-11, Chicago - Population Research Center.
  2. Farrell, Joseph & Maskin, Eric, 1989. "Renegotiation in repeated games," Games and Economic Behavior, Elsevier, Elsevier, vol. 1(4), pages 327-360, December.
  3. Cigno, Alessandro & Giannelli, Gianna Claudia & Rosati, Furio C. & Vuri, Daniela, 2004. "Is There Such a Thing as a Family Constitution? A Test Based on Credit Rationing," IZA Discussion Papers 1116, Institute for the Study of Labor (IZA).
  4. Douglas Bernheim, B. & Ray, Debraj, 1989. "Collective dynamic consistency in repeated games," Games and Economic Behavior, Elsevier, Elsevier, vol. 1(4), pages 295-326, December.
  5. Cigno, Alessandro, 1993. "Intergenerational transfers without altruism : Family, market and state," European Journal of Political Economy, Elsevier, Elsevier, vol. 9(4), pages 505-518, November.
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