Risk-Sharing Within Families: Evidence From the Health and Retirement Study
| Autor: | Oksana Leukhina, S. Nuray Akin |
|---|---|
| Rok vydání: | 2013 |
| Předmět: |
Economics and Econometrics
Labour economics Control and Optimization Longitudinal data Applied Mathematics Extended family Family income Health and Retirement Study jel:J1 Empirical research Permanent income hypothesis Risk sharing Economics Demographic economics jel:E6 jel:C5 Risk-sharing altruism within-family transfers Health and Retirement Study |
| Popis: | We report strong empirical support for the presence of self-interest-based risk sharing within extended families in the U.S. A standard model of self-interest-based risk sharing predicts that the share of current family income consumed by a child positively depends on that child׳s permanent income. It follows that parental transfers to children that are expected to earn more over the period of risk-sharing arrangements should exhibit less sensitivity to the recipient׳s income fluctuations. We test this distinguishing prediction of self-interest-based risk sharing by exploiting the variation of transfer receipts among siblings, observed over 17 years of longitudinal data spanned by the Health and Retirement Study. |
| Databáze: | OpenAIRE |
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