PT  - JOURNAL ARTICLE
AU  - De Weerdt, Joachim
AU  - Genicot, Garance
AU  - Mesnard, Alice
TI  - Asymmetry of Information within Family Networks
AID  - 10.3368/jhr.54.1.0616.8023R1
DP  - 2018 Jan 30
TA  - Journal of Human Resources
PG  - 0616_8023R1
4099  - http://jhr.uwpress.org/content/early/2018/01/25/jhr.54.1.0616.8023R1.short
4100  - http://jhr.uwpress.org/content/early/2018/01/25/jhr.54.1.0616.8023R1.full
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 mis-perception 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.