We show that once interfamily exchanges are considered, Becker?s rotten kids mechan- ism has some remarkable implications that have gone hitherto unnoticed. Specifically, we establish that Cornes and Silva's (1999) result of e¢fficiency in the contribution game amongst siblings extends to a...

One of the pervasive problems with means-tested public long term care (LTC) programs is their inability to prevent individuals who could a¤ord private long term services from taking advantage of public care. They often manage to elude the means-test net through strategic impoverishment. We show...

We study exchanges between three overlapping generations with non-dynastic altruism. The middleaged choose informal care provided to their parents and education expenditures for their children. The young enjoy their education, while the old may leave a bequest to their children. Within each...