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Government Transfers and the Samaritan's Dilemma in the Family

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  • Ritsuko Futagami
  • Kimiyoshi Kamada
  • Takashi Sato

Abstract

This paper examines the effectiveness of government transfers in overcoming the Samaritan's dilemma in a family in which the child saves an insufficient amount in order to induce larger bequests from the parent. The results are as follows. First, exogenous government transfers do not affect intergenerational consumption allocation if bequests are operative. Second, assuming that government transfers are chosen strategically, the government precommits to such a level of transfers from the parent to the child that bequests become inoperative, and thus rids the child of the incentive for undersaving. This engenders an efficient intertemporal allocation of consumption.

Suggested Citation

  • Ritsuko Futagami & Kimiyoshi Kamada & Takashi Sato, 2004. "Government Transfers and the Samaritan's Dilemma in the Family," Public Choice, Springer, vol. 118(1_2), pages 77-86, January.
    • Handle: RePEc:kap:pubcho:v:118:y:2004:i:1_2:p:77-86
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    Cited by:

    1. Dughera, Stefano & Marciano, Alain, 2022. "Altruism and Strategic Courage. Inside Buchanan's Samaritan's Dilemma," Department of Economics and Statistics Cognetti de Martiis. Working Papers 202201, University of Turin.
    2. Alain Marciano, 2023. "The Political Economy of Buchanan's Samaritan's Dilemma," Springer Books, in: Martin A. Leroch & Florian Rupp (ed.), Power and Responsibility, pages 345-357, Springer.
    3. Alain Marciano, 2014. "Exploitation, Mutual Advantage and The Myth of the Samaritan's Dilemma," ICER Working Papers 10-2014, ICER - International Centre for Economic Research.
    4. Stefano Dughera & Alain Marciano, 2023. "Inside Buchanan's Samaritan's Dilemma: altruism, strategic courage and ethics of responsibility," Economics of Governance, Springer, vol. 24(2), pages 207-233, June.
    5. Robert P. Rebelein, 2006. "Strategic Behavior, Debt Neutrality, and Crowding Out," Public Finance Review, , vol. 34(2), pages 148-172, March.
    6. Dijkstra, Bouwe R., 2007. "Samaritan versus rotten kid: Another look," Journal of Economic Behavior & Organization, Elsevier, vol. 64(1), pages 91-110, September.
    7. Stefano Dughera & Alain Marciano, 2020. "Altruism, predation and the Samaritan's dilemma," Working Papers hal-02550432, HAL.

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