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.
Access to external full text or publisher's version may require subscription.
Full-text Version
Publisher’s Version
Language
English
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