Di Tella, R.; MacCulloch, R. - Department of Economics, Oxford University - 1997
We analyze the relationship between the family and the Welfare State when intra-family transfers are governed by risk …-sharing considerations (i.e. not by altruism). For the benchmarl case, the classic neutrality result is obtained: more generous unemployment … benefits, provided by the State, crowd out family risk-sharing arrangements one-for-one. The model is extended to capture the …