Lisa Callegaro (Department of Economics, University Of Venice Cà Foscari) Giacomo Pasini () (Department of Economics, University Of Venice Cà Foscari; Economics and Organization, School for Advanced Studies in Venice)
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We study jointly the health perception of the elderly and the care giving decision of their adult children. Social interactions play a crucial role: elder parents' health perception depends on relations with household members. On the other hand adult children make their care giving decisions strategically, meaning that each of them considers his siblings' decision. We find empirical evidence which support this claim using the 2004 wave of the SHARE survey. We estimate social interaction effects by means of methods taken from the spatial econometric literature. Health perception relation with care giving depends on the determinants of adult children's decision to care: Parents' health may be modelled as a common good for parents and children; the latter's decision may be driven by bequest motives or by pure altruism and/or cultural values. We test implications of the model thanks to the unique features of the SHARE dataset: it is trans--national, allowing to control for cultural and institutional differences, it contains information on health status of over-50 Europeans and details on their social and intergenerational relations.
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Paper provided by University of Venice "Ca' Foscari", Department of Economics in its series Working Papers with number
2007_10.
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
Axel Borsch-Supan & Daniel L. McFadden & Reinhold Schnabel, 1996.
"Living Arrangements: Health and Wealth Effects,"
NBER Chapters,
in: Advances in the Economics of Aging, pages 193-216
National Bureau of Economic Research, Inc.
[Downloadable!]
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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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.
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