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We show that once interfamily exchanges are considered, Becker's rotten kids mechanism has some remarkable implications that have gone hitherto unnoticed. Specifically, we establish that Cornes and Silva's (1999) result of efficiency in the contribution game amongst siblings extends to a setting...
Persistent link: https://www.econbiz.de/10010252137
Neither marriage nor a legally enforceable contract serves any useful purpose if the parties have access to a perfect credit market. In the presence of credit rationing, efficiency and utility equalization are guaranteed only by a legally enforceable contract. Separate-property marriage may...
Persistent link: https://www.econbiz.de/10010227229
. While there was no change in the overall fertility rate, marital fertility declined, and there was an increase in nonmarital … relative prospects of men may reduce their marriage-market value and affect marital and fertility behavior. …
Persistent link: https://www.econbiz.de/10012652849
first child raised fertility and increased the probability that the family was living without a father. We find that for our … associated with lower fertility, particularly for natives. Thus, by the 2008-2013 period, any apparent son preference in … fertility decisions appears to have been outweighed by factors such as cost concerns in raising girls or increased female …
Persistent link: https://www.econbiz.de/10012124840
The nineteenth-century American family experienced tremendous demographic, economic, and institutional changes. By … using birth order effects as a proxy for family environment, and linked census data on men born between 1835 and 1910, we … study how the family's role in human capital production evolved over this period. We find firstborn premiums for …
Persistent link: https://www.econbiz.de/10014528214
The effects and optimal choice of policy instruments affecting the family (child benefits, taxes on child …-specific commodities, etc.) are examined within the context of a household economics model with fertility choice. The simultaneous … consideration of child benefits and commodity taxes in the presence of endogenous fertility yields some remarkable results. One is …
Persistent link: https://www.econbiz.de/10009781693
This paper investigates relational incentive contracts with continuous, privately-observed agent types that are persistent over time. With fixed agent types, full separation is not possible when continuation equilibrium payoffs following revelation are on the Pareto frontier of attainable...
Persistent link: https://www.econbiz.de/10011300994
Basu and Van (1998) show that a ban on child labour may be self-enforcing under the extreme assumption that, above the subsistence level, no amount of consumption can compensate parents for the disutility of child labour. We show that a partial ban may be self-enforcing also in a more general...
Persistent link: https://www.econbiz.de/10014505309
This paper characterizes the equilibrium sets of an intrinsic common agencygame with discrete types and direct revelation mechanisms. After presentinga general algorithm to find the pure-strategy equilibria of this game, we use itto characterize these equilibria when the two principals control...
Persistent link: https://www.econbiz.de/10011400396
I analyze a model in which a principal offers a contract to an agent and can influence the agent’s marginal return of effort by the choice of the project mission. The principal's and the agents' mission preferences are misaligned, and the agents have unobservable intrinsic motivation levels. I...
Persistent link: https://www.econbiz.de/10011561184