Abstract

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.

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Additional Information

ISSN
1548-8004
Print ISSN
0022-166X
Pages
pp. 225-254
Launched on MUSE
2019-01-14
Open Access
No
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