Conflict and Cooperation within the Family, and between the State and the Family, in the Provision of Old-Age Security

The early contributions to the economic literature on this sub- ject assume that only market goods yield utility, and that the only way adults can secure the consumption of these goods in old age is by saving. More recent contributions recognize that the elderly derive utility also from the care and attention they may receive from their relatives, and that they may eventually become too old or inÂ…rm to keep control over their own money. According to a branch of the literature, parents negotiate the provision of per- sonal services directly with their children. According to another, such negotiations are made unnecessary by self-enforcing fam- ily rules. The present paper reviews the existing literature and addresses the question whether public provision of pensions and other facilities for the elderly raises welfare even when it crowds out family-level arrangements.