The Rotten-Kid Theorem Meets the Samaritan's Dilemma
Abstract
Becker derives the Rotten-Kid theorem -- that a child will not behave in a manner which lowers the parent's income more than it raises the child's -- in a one period setting. Not captured in Becker's analysis is that the family environment can exhibit what others refer to as the Samaritan's Dilemma. That is, children may consume too much in early periods because by doing so they can increase the income transfers they receive in later periods. In this paper we formally consider the Samaritan's Dilemma and its relation to the Rotten-Kid Theorem in a two period version of Becker's model.Download Info
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Bibliographic Info
Paper provided by Queen's University, Department of Economics in its series Working Papers with number 650.Length: 22 pages
Date of creation: 1986
Date of revision:
Handle: RePEc:qed:wpaper:650
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Related research
Keywords:Other versions of this item:
- Bruce, Neil & Waldman, Michael, 1990. "The Rotten-Kid Theorem Meets the Samaritan's Dilemma," The Quarterly Journal of Economics, MIT Press, vol. 105(1), pages 155-65, February.
- Neil Bruce & Michael Waldman, 1986. "The Rotten-Kid Theorem Meets the Samaritan's Dilemma," UCLA Economics Working Papers 402, UCLA Department of Economics.
References
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- Gary S. Becker, 1974.
"A Theory of Social Interactions,"
NBER Working Papers
0042, National Bureau of Economic Research, Inc.
- Becker, Gary S, 1974. "A Theory of Social Interactions," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1063-93, Nov.-Dec..
- Shleifer, Andrei & Summers, Lawrence H. & Bernheim, B. Douglas, 1986.
"The Strategic Bequest Motive,"
Scholarly Articles
3721794, Harvard University Department of Economics.
- Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986. "The Strategic Bequest Motive," Journal of Labor Economics, University of Chicago Press, vol. 4(3), pages S151-82, July.
- 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.
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