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Research ArticleArticle

Asymmetry of Information within Family Networks

Joachim De Weerdt, Garance Genicot and Alice Mesnard
Journal of Human Resources, January 2019, 54 (1) 225-254; DOI: https://doi.org/10.3368/jhr.54.1.0616.8023R1
Joachim De Weerdt
Joachim De Weerdt is Senior Lecturer at the University of Antwerp and Senior Research Fellow at LICOS (KU Leuven)
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  • For correspondence: [email protected]
Garance Genicot
Garance Genicot is Associate Professor at Georgetown University
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  • For correspondence: [email protected]
Alice Mesnard
Alice Mesnard is a Reader in Economics at City University of London and works at Institute for Fiscal Studies
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  • For correspondence: [email protected]
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Abstract

This paper studies asymmetry of information and transfers within 712 extended family networks from Tanzania. Using cross-reports on asset holdings, we construct measures of misperception of living standards among households within the same network. We contrast altruism, pressure, exchange, and risk sharing as motives to transfer in simple models with asymmetric information. Testing the model predictions in the data uncovers the active role played by recipients of transfers. Our findings suggest that recipients set the terms of the transfers, either by exerting pressure on donors or because they hold substantial bargaining power in their exchange relationships.

JEL Classification
  • O12
  • O15
  • D12
  • Received June 2016.
  • Accepted July 2017.

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Journal of Human Resources: 54 (1)
Journal of Human Resources
Vol. 54, Issue 1
1 Jan 2019
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Asymmetry of Information within Family Networks
Joachim De Weerdt, Garance Genicot, Alice Mesnard
Journal of Human Resources Jan 2019, 54 (1) 225-254; DOI: 10.3368/jhr.54.1.0616.8023R1

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Asymmetry of Information within Family Networks
Joachim De Weerdt, Garance Genicot, Alice Mesnard
Journal of Human Resources Jan 2019, 54 (1) 225-254; DOI: 10.3368/jhr.54.1.0616.8023R1
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Keywords

  • O12
  • O15
  • D12
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