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Geography of the Family

  • Kai A. Konrad
  • Harald Künemund
  • Kjell Erik Lommerud
  • Julio R. Robledo

We study the residential choice of siblings who are altruistic towards their parents. The firstborn child's location choice influences the behavior of the second-born child and can shift some of the burden of providing care for the parents from one child to the other. These strategic considerations lead to an equilibrium location pattern with firstborn children locating further away from their parents than second-born children. We also analyze the location choices empirically using German data. These data confirm our theoretical predictions. (JEL H41, J10)

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Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 92 (2002)
Issue (Month): 4 (September)
Pages: 981-998

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Handle: RePEc:aea:aecrev:v:92:y:2002:i:4:p:981-998
Note: DOI: 10.1257/00028280260344551
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  1. Cox, Donald & Rank, Mark R, 1992. "Inter-vivos Transfers and Intergenerational Exchange," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 305-14, May.
  2. Groot, Wim & Verberne, Maartje, 1997. "Aging, Job Mobility, and Compensation," Oxford Economic Papers, Oxford University Press, vol. 49(3), pages 380-403, July.
  3. Andreoni, James, 1989. "Giving with Impure Altruism: Applications to Charity and Ricardian Equivalence," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1447-58, December.
  4. Laurence J. Kotlikoff & John N. Morris, 1989. "How Much Care Do the Aged Receive from Their Children? A Bimodal Picture of Contact and Assistance," NBER Chapters, in: The Economics of Aging, pages 151-176 National Bureau of Economic Research, Inc.
  5. Ganzeboom, H.B.G. & de Graaf, P.M. & Treiman, D.J. & de Leeuw, J., 1992. "A standard international socio-economic index of occupational status," WORC Paper 85970031-d601-46e3-befb-1, Tilburg University, Work and Organization Research Centre.
  6. Lundberg, S. & Pollak, R.A., 1991. "Separate Spheres Bargaining and the Marriage Market," Working Papers 91-08, University of Washington, Department of Economics.
  7. Joseph G. Altonji & Fumio Hayashi & Laurence Kotlikoff, 1995. "Parental Altruism and Inter Vivos Transfers: Theory and Evidence," NBER Working Papers 5378, National Bureau of Economic Research, Inc.
  8. 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.
  9. Bergstrom, Ted, 1989. "Love and Spaghetti, the Opportunity Cost of Virtue," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 165-73, Spring.
  10. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
  11. Robert H. Topel, 1990. "Specific Capital, Mobility, and Wages: Wages Rise with Job Seniority," NBER Working Papers 3294, National Bureau of Economic Research, Inc.
  12. Konrad, Kai A & Lommerud, Kjell Erik, 1995. " Family Policy with Non-cooperative Families," Scandinavian Journal of Economics, Wiley Blackwell, vol. 97(4), pages 581-601, December.
  13. Laurence J. Kotlikoff, 1992. "Economic Exchange and Support Within U.S. Families," NBER Working Papers 4080, National Bureau of Economic Research, Inc.
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