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Intergenerational transfers in rural households: A game theoretical approach

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  • Américo Mendes

    (Portuguese Catholic University Porto - Faculty of Economics & Management)

Abstract

The household membership decision is viewed as a “research project” where the offspring invests in human and non human capital to influence the probability of finding an alternative to the parental household. The problem is formulated as a differential game between a selfish offspring and altruistic parents. The solution is consistent with facts” such as the “flexibility of inheritance systems” and the “generational fragmentation” of the family property when the economic opportunities expand outside the parental household.

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Paper provided by EconWPA in its series Labor and Demography with number 0503004.

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Date of creation: 13 Mar 2005
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Handle: RePEc:wpa:wuwpla:0503004

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Keywords: intergenerational transfers; rural households; game theory;

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  1. Barro, Robert J, 1974. "Are Government Bonds Net Wealth?," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1095-1117, Nov.-Dec..
  2. Gary S. Becker, 1974. "A Theory of Social Interactions," NBER Working Papers 0042, National Bureau of Economic Research, Inc.
  3. Shleifer, Andrei & Summers, Lawrence H. & Bernheim, B. Douglas, 1986. "The Strategic Bequest Motive," Scholarly Articles 3721794, Harvard University Department of Economics.
  4. Reinganum, Jennifer F, 1982. "A Dynamic Game of R and D: Patent Protection and Competitive Behavior," Econometrica, Econometric Society, vol. 50(3), pages 671-88, May.
  5. Longworth, John W., 1972. "Inter-Generational Transfers In The Rural Sector: A Review Of Some Problems," Australian Journal of Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 16(03), December.
  6. Alston, Lee J. & Schapiro, Morton Owen, 1984. "Inheritance Laws Across Colonies: Causes and Consequences," The Journal of Economic History, Cambridge University Press, vol. 44(02), pages 277-287, June.
  7. Reinganum, Jennifer F., 1981. "Dynamic games of innovation," Journal of Economic Theory, Elsevier, vol. 25(1), pages 21-41, August.
  8. McElroy, Marjorie B, 1985. "The Joint Determination of Household Membership and Market Work: The Case of Young Men," Journal of Labor Economics, University of Chicago Press, vol. 3(3), pages 293-316, July.
  9. Sundstrom, William A. & David, Paul A., 1988. "Old-age security motives, labor markets, and farm family fertility in antebellum American," Explorations in Economic History, Elsevier, vol. 25(2), pages 164-197, April.
  10. Habakkuk, H. J., 1955. "Family Structure and Economic Change in Nineteenth-Century Europe," The Journal of Economic History, Cambridge University Press, vol. 15(01), pages 1-12, March.
  11. Gagan, David P., 1976. "The Indivisibility of Land: A Microanalysis of the System of Inheritance in Nineteenth-Century Ontario," The Journal of Economic History, Cambridge University Press, vol. 36(01), pages 126-141, March.
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