IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-07c70012.html
   My bibliography  Save this article

The stability of intergenerational cooperation in altruistic families

Author

Listed:
  • Jose Alberto Molina

    (University of Zaragoza and IZA)

  • Iñaki Vazquez

    (University of Zaragoza)

  • Joaquín Andaluz

    (University of Zaragoza)

Abstract

This paper analyses the stability of bargaining solutions in a family consisting of two parents and one adult child, by developing a non-cooperative family game. Assuming different bargaining powers between parents and the child, we find that the greater bargaining power of the parents allows them to take greater gains from the cooperation, and reduce the incentives to deviate from the cooperative agreement. The presence of altruism between the players will significantly reduce the probability that there will be incentives to break the cooperative agreement. A higher level of altruism increases the stability of cooperation, and will overcome the contrary effect of other factors.

Suggested Citation

  • Jose Alberto Molina & Iñaki Vazquez & Joaquín Andaluz, 2007. "The stability of intergenerational cooperation in altruistic families," Economics Bulletin, AccessEcon, vol. 3(39), pages 1-7.
    • Handle: RePEc:ebl:ecbull:eb-07c70012
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/pubs/EB/2007/Volume3/EB-07C70012A.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andaluz, Joaquin & Molina, Jose Alberto, 2007. "How do altruistic parental transfers affect the welfare gains of marriage?," Research in Economics, Elsevier, vol. 61(1), pages 1-9, March.
    2. Lundberg, Shelly & Pollak, Robert A, 1993. "Separate Spheres Bargaining and the Marriage Market," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 988-1010, December.
    3. Lundberg, Shelly & Pollak, Robert A, 1994. "Noncooperative Bargaining Models of Marriage," American Economic Review, American Economic Association, vol. 84(2), pages 132-137, May.
    4. Shelly Lundberg & Robert Pollak, 2003. "Efficiency in Marriage," Review of Economics of the Household, Springer, vol. 1(3), pages 153-167, September.
    5. McElroy, Marjorie B & Horney, Mary Jean, 1981. "Nash-Bargained Household Decisions: Toward a Generalization of the Theory of Demand," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 22(2), pages 333-349, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gimenez-Nadal, Jose Ignacio & Molina, Jose Alberto, 2017. "The Substitution Effect and the Profit Function in Consumption: expressions from the Marshallian, Hicksian, and Frischian demand functions," MPRA Paper 82249, University Library of Munich, Germany.
    2. Ferrando-Latorre, Sandra, 2017. "Risky consumption and intergenerational mobility: a research program in a family context," MPRA Paper 79777, University Library of Munich, Germany.
    3. Boldova, Daniel Miguel, 2019. "Efectos económicos de las leyes sobre la estructura familiar: Evidencia internacional del divorcio y la custodia [Economic effects of family structure laws: International evidence of divorce and cu," MPRA Paper 96440, University Library of Munich, Germany.
    4. García, Lucia & Molina, José Alberto, 2017. "The household structure: recent international evolution," MPRA Paper 82049, University Library of Munich, Germany.
    5. Lopez Tris, Carlos Javier, 2020. "Evidencia socioeconómica del abandono escolar en Europa [Socioeconomic evidence of early school leaving in Europe]," MPRA Paper 98124, University Library of Munich, Germany.
    6. García, Lucia, 2018. "Inter-generational and intra-generational transfers: international evidence," MPRA Paper 83986, University Library of Munich, Germany.
    7. Bellido, Héctor, 2020. "La transición del sistema educativo al mercado laboral en Europa: Efectos del abandono escolar en la incorporación al trabajo de los jóvenes europeos [The transition from the education system to th," MPRA Paper 103071, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ebl:ecbull:v:3:y:2007:i:39:p:1-7 is not listed on IDEAS
    2. Joaquín Andaluz & Miriam Marcén & José Alberto Molina, 2017. "The Effects of Inter-Generational Transfers on the Marital Surplus," Manchester School, University of Manchester, vol. 85(3), pages 320-338, June.
    3. Haizhen Mou & Stanley L. Winer, 2010. "Fiscal Incidence When Both Individual Welfare and Family Structure Matter: The Case of Subsidization of Home -care for the Elderly," ICER Working Papers 15-2010, ICER - International Centre for Economic Research.
    4. Liliana E. Pezzin & Robert A. Pollak & Barbara S. Schone, 2007. "Efficiency in Family Bargaining: Living Arrangements and Caregiving Decisions of Adult Children and Disabled Elderly Parents," CESifo Economic Studies, CESifo Group, vol. 53(1), pages 69-96, March.
    5. Chiappori, Pierre-André & Donni, Olivier, 2006. "Les modèles non unitaires de comportement du ménage : un survol de la littérature," L'Actualité Economique, Société Canadienne de Science Economique, vol. 82(1), pages 9-52, mars-juin.
    6. Robert Pollak, 2003. "Gary Becker's Contributions to Family and Household Economics," Review of Economics of the Household, Springer, vol. 1(1), pages 111-141, January.
    7. Andaluz, Joaquín & Marcén, Miriam & Molina, José Alberto, 2007. "Income Transfers, Welfare and Family Decisions," IZA Discussion Papers 2804, Institute of Labor Economics (IZA).
    8. Patricia Apps & Ray Rees, 2007. "Household Models: An Historical Perspective," CESifo Working Paper Series 2172, CESifo.
    9. Iyigun, Murat, 2005. "Bargaining and Specialization in Marriage," IZA Discussion Papers 1744, Institute of Labor Economics (IZA).
    10. repec:hal:spmain:info:hdl:2441/5j2m1g6i7j8pnapkjvifl6e30f is not listed on IDEAS
    11. Patricia Apps & Ray Rees, 2011. "Relational Contracts, Taxation and the Household," CESifo Economic Studies, CESifo Group, vol. 57(2), pages 245-258, June.
    12. Elisabeth Gugl, 2009. "Income splitting, specialization, and intra‐family distribution," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 42(3), pages 1050-1071, August.
    13. Man Si, 2015. "Intrafamily bargaining and love," Review of Economics of the Household, Springer, vol. 13(4), pages 771-789, December.
    14. Jon Strand, 2007. "Public-good valuation and intra-family allocation," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 38(4), pages 527-543, December.
    15. Malapit, Hazel Jean L., 2012. "Why do spouses hide income?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 41(5), pages 584-593.
    16. Francesconi, Marco & Muthoo, Abhinay, 2003. "An Economic Model of Child Custody," IZA Discussion Papers 857, Institute of Labor Economics (IZA).
    17. Gillian Hewitson, 2001. "A Survey of Feminist Economics," Working Papers 2001.01, School of Economics, La Trobe University.
    18. Sevilla-Sanz, Almudena & Fernandez, Cristina, 2006. "Social norms and household time allocation," ISER Working Paper Series 2006-38, Institute for Social and Economic Research.
    19. Matthew J. Baker & Joyce P. Jacobsen, 2007. "Marriage, Specialization, and the Gender Division of Labor," Journal of Labor Economics, University of Chicago Press, vol. 25(4), pages 763-793.
    20. Ngo, Thi Minh-Phuong & Wahhaj, Zaki, 2012. "Microfinance and gender empowerment," Journal of Development Economics, Elsevier, vol. 99(1), pages 1-12.
    21. Helmut Rainer, 2008. "Gender discrimination and efficiency in marriage: the bargaining family under scrutiny," Journal of Population Economics, Springer;European Society for Population Economics, vol. 21(2), pages 305-329, April.
    22. M. Fafchamps & A. R. Quisumbing, 2002. "Control and Ownership of Assets Within Rural Ethiopian Households," Journal of Development Studies, Taylor & Francis Journals, vol. 38(6), pages 47-82.

    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-07c70012. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.