Title

Survival of the gene, intergenerational transfers and precautionary saving

Document Type

Journal article

Source Publication

Journal of Development Economics

Publication Date

4-1-2005

Volume

76

Issue

2

First Page

451

Last Page

479

Keywords

Intergenerational transfers, Precautionary bequest, Survival of the gene

Abstract

This paper provides a model of bequest and investment in children's human capital at low incomes. It posits that parents and children are linked through their common concern of grandchildren and intergenerational transfers provide a material basis for the perpetuation of the family line. The model characterizes intergenerational strategic interactions in a dynamic game theoretical framework. Moreover, it explores intergenerational uncertainty as a source of precautionary saving. In contrast with the existing literature, the model implies that there are qualitative differences between precautionary saving from one's own income uncertainty and precautionary bequests from children's income uncertainty.

DOI

10.1016/j.jdeveco.2004.01.003

Print ISSN

03043878

E-ISSN

18726089

Publisher Statement

Copyright © 2004 Elsevier B.V.

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Full-text Version

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Recommended Citation

Fan, C. S. (2005). Survival of the gene, intergenerational transfers and precautionary saving. Journal of Development Economics, 76(2), 451-479. doi: 10.1016/j.jdeveco.2004.01.003