Income Transfers, Welfare and Family Decisions
نویسندگان
چکیده
Income Transfers, Welfare and Family Decisions 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 within a relationship of one-sided altruism. In the second stage, the level of welfare is deduced by way of a Nash bargaining solution. We show that intergenerational transfers may produce losses derived from the marriage. We have also found that the donor of an intergenerational transfer can behave in a compensatory way in an altruism model. JEL Classification: D13, J12, D64, D10, C70
منابع مشابه
Should Transfers to Poor Families be Conditional on School Attendance? A Household Bargaining Perspective∗
This paper considers the welfare implications of transfers to poor families that are conditional on school attendance and other forms of investment on their children’s human capital. Family decisions are assumed to be the result of (generalized) Nash bargaining between the two parents. We show that, as long as bequests are zero, conditional transfers are better for children than unconditional t...
متن کاملSubstitution and Income Effects at the Aggregate Level: the Effective Budget Constraint of the Government and the Flypaper Effect
This paper analyzes the effect of a change in lump-sum (private) income on the tax and expenditure decisions of a government constrained by taxpayers’ behavioral responses to the tax policy. Lump-sum changes of private income are generally characterized as pure income effects on taxpayers’ behavior, and usually considered in public finance theory as imposing no price effects on the economy. In ...
متن کاملOptimal Income Taxes, Transfers and Inequality for an Atkinson-Based Social Welfare Function
The paper extends Atkinson’s measure of inequality to incorporate endogenous determination of incomes, with labour supplies responding to the tax system. On the basis of solutions for optimal income taxes using double limit analysis and derived from the social welfare function in this extension, the paper considers how the optimal income tax, transfers and inequality vary with the parameter use...
متن کاملMacrodynamic Implications of Income-Transfer Policies for Human Capital Investment and School Effort
The distortion in educational investment in poorer children is often attributed to credit market imperfections and hence to the unequal access of children to educational opportunity. However, the distortion might also be attributable to disincentive effects that cause children to make inefficient use of educational opportunities. This possibility is demonstrated for an overlapping generations e...
متن کاملThe Role of Parental Wealth & Income in Financing Children’s College Attendance & Its Consequences∗
In this paper, we examine three related issues. First, we examine the influence of parental wealth on whether children attend college and whether parents help to finance it. Second, we examine what effect these decisions have on the subsequent levels of indebtedness of parents and their children. Third, we examine how the role of parents in the financing of their children’s college education an...
متن کامل