Survival of the gene, intergenerational transfers and precautionary saving

Chengze, Simon FAN

doi:10.1016/j.jdeveco.2004.01.003

Survival of the gene, intergenerational transfers and precautionary saving

Chengze, Simon FAN

Department of Economics

Research output: Journal Publications › Journal Article (refereed) › peer-review

6 Citations (Scopus)

Abstract

This paper provides a model of bequest and investment in children's human capital at low incomes. It posits that parents and children are linked through their common concern of grandchildren and intergenerational transfers provide a material basis for the perpetuation of the family line. The model characterizes intergenerational strategic interactions in a dynamic game theoretical framework. Moreover, it explores intergenerational uncertainty as a source of precautionary saving. In contrast with the existing literature, the model implies that there are qualitative differences between precautionary saving from one's own income uncertainty and precautionary bequests from children's income uncertainty.

Original language	English
Pages (from-to)	451-479
Number of pages	29
Journal	Journal of Development Economics
Volume	76
Issue number	2
DOIs	https://doi.org/10.1016/j.jdeveco.2004.01.003
Publication status	Published - 1 Apr 2005

Bibliographical note

I thank Oded Galor, Herschel I. Grossman, David N. Weil, Ping Lin, and particularly two anonymous referees, whose insightful comments and suggestions improved the quality of the paper significantly.

Funding

The financial support from a Sloan Foundation Doctoral Dissertation Fellowship is gratefully acknowledged. All remaining errors are entirely my own.

Keywords

Intergenerational transfers
Precautionary bequest
Survival of the gene

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10.1016/j.jdeveco.2004.01.003

Cite this

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abstract = "This paper provides a model of bequest and investment in children's human capital at low incomes. It posits that parents and children are linked through their common concern of grandchildren and intergenerational transfers provide a material basis for the perpetuation of the family line. The model characterizes intergenerational strategic interactions in a dynamic game theoretical framework. Moreover, it explores intergenerational uncertainty as a source of precautionary saving. In contrast with the existing literature, the model implies that there are qualitative differences between precautionary saving from one's own income uncertainty and precautionary bequests from children's income uncertainty.",

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AB - This paper provides a model of bequest and investment in children's human capital at low incomes. It posits that parents and children are linked through their common concern of grandchildren and intergenerational transfers provide a material basis for the perpetuation of the family line. The model characterizes intergenerational strategic interactions in a dynamic game theoretical framework. Moreover, it explores intergenerational uncertainty as a source of precautionary saving. In contrast with the existing literature, the model implies that there are qualitative differences between precautionary saving from one's own income uncertainty and precautionary bequests from children's income uncertainty.

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KW - Precautionary bequest

KW - Survival of the gene

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JF - Journal of Development Economics

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Survival of the gene, intergenerational transfers and precautionary saving

Abstract

Bibliographical note

Funding

Keywords

Access to Document

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