RT Journal Article
SR Electronic
T1 Asymmetry of Information within Family Networks
JF Journal of Human Resources
JO J Hum Resour
FD University of Wisconsin Press
SP 225
OP 254
DO 10.3368/jhr.54.1.0616.8023R1
VO 54
IS 1
A1 Joachim De Weerdt
A1 Garance Genicot
A1 Alice Mesnard
YR 2019
UL http://jhr.uwpress.org/content/54/1/225.abstract
AB 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.