This paper studies the effects of different income transfers on individual welfare, in both marriage and divorce situations, and on family decisions. We assume three generations within the family. We develop a sequential game that, in a first stage, determines the optimum level of the transfer...

Using an unusually comprehensive dataset from rural Ethiopia, we look for systematic relationships between bargaining power and various dimensions of intrahousehold welfare. Our results confrm some of the results previously found in the literature. We find that the relative nutrition of spouses...

Standard homo economicus lives in a world of complete markets and maximizes utility which is a function of his personal consumption. This approximation cannot account for parents making transfers to adult children, children taking care of old parents, nor for gifts, inheritance and many other...