Tough Love and Intergenerational Altruism*

Bhatt, Vipul; Ogaki, Masao

doi:10.1111/j.1468-2354.2012.00701.x

Cited by 20 publications

(14 citation statements)

References 47 publications

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“…First, it is shown that when the child's habit parameter exogenously shifts upward, the altruistic parent reduces the unexpectedly low income transfer further, so as to mitigate the child's over-consumption. The result is comparable with parental "tough love" behavior that Bhatt and Ogaki (2012) derive, by specifying an endogenous time-discounting function. They show that an altruistic parent reduces income transfer in order to affect the child's rate of patience.…”

Section: Introductionsupporting

confidence: 56%

“…Second, our tough love is welfare-enhancing to the child if his parent is sufficiently altruistic and relatively rich. This contrasts with the Bhatt and Ogaki model, wherein a mother's tough love reduces her son's welfare, because the mother evaluates her son's future utility by using a different time preference than the child (Bhatt and Ogaki 2012). 4 Second, we discuss how the main results change in the case of "good" habits, in which parents' transfer involves children's good-habit formation that raises their future gratification (e.g., transfers in the form of books and piano lessons).…”

Section: Introductionmentioning

confidence: 89%

“…The child is assumed to face borrowing constraints in period 1: / ≤ . In order to focus on authoritative parenting to reshape children's intertemporal preferences, we follow Bhatt and Ogaki (2012) in assuming that his disposable income is small enough that the borrowing constraint is binding: 6…”

Section: The Child's Problemmentioning

confidence: 99%

“…Therefore, we consider an altruistic parent's behavior toward his/her habit-forming child by modifying the framework of Becker (1974) and Barro (1974), in which the parent obtains utility from his or her own consumption, as well as the child's utility. In line with Weinberg (2001) and Bhatt and Ogaki (2012), the altruistic parent (e.g., a mother) can determine the consumption level of her young child (a son, in this case) by controlling the amount of income transferred to him. A unique feature of our model is that the child is habit forming.…”

Section: Introductionmentioning

confidence: 99%

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Welfare-enhancing parental altruism and children’s habit formation

Zhang

Ikeda

2016

Int Rev Econ

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We propose a model of parental altruism in relation to children's habit formation, as children are unaware of their developing habits while young and only become cognizant with age. We show that an altruistic mother (1) maintains the amount of income transferred to her child lower than the child would desire and (2) reduces further income transfer upon an exogenous increase in case of a particular negative habit of the child. The child, when grown, may end up being grateful for the small income transfer if the mother is sufficiently altruistic and has a relatively high income: When evaluated by the realized habitual preferences, a small income transfer leads to greater welfare. This implies that parents from richer families tend to appreciate the authoritative parenting practice.

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Section: Introductionsupporting

confidence: 56%

Section: Introductionmentioning

confidence: 89%

Section: The Child's Problemmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Welfare-enhancing parental altruism and children’s habit formation

Zhang

Ikeda

2016

Int Rev Econ

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“…In our model, similarly, a parent may find it optimal to restrict the choice set of the next member of the dynasty. Other related papers in this literature include Amador, Werning, and Angeletos (2006) and Bhatt and Ogaki (2012). Pavoni and Yazici (2016) studied an optimal taxation problem where the inefficiency in decision making that arises from time-inconsistent preferences calls for a positive tax on parental transfers.…”

Section: Related Literaturementioning

confidence: 99%

Parenting With Style: Altruism and Paternalism in Intergenerational Preference Transmission

Doepke¹,

Zilibotti²

2017

Econometrica

260

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We develop a theory of parent‐child relations that rationalizes the choice between alternative parenting styles (as set out in Baumrind, 1967). Parents maximize an objective function that combines Beckerian altruism and paternalism towards children. They can affect their children's choices via two channels: either by influencing children's preferences or by imposing direct restrictions on their choice sets. Different parenting styles (authoritarian, authoritative, and permissive) emerge as equilibrium outcomes and are affected both by parental preferences and by the socioeconomic environment. Parenting style, in turn, feeds back into the children's welfare and economic success. The theory is consistent with the decline of authoritarian parenting observed in industrialized countries and with the greater prevalence of more permissive parenting in countries characterized by low inequality.

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The Effects of Parental Health Shocks on Adult Offspring Smoking Behavior and Self‐Assessed Health

Darden

Gilleskie

2015

Health Economics

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An important avenue for smoking deterrence may be through familial ties if adult smokers respond to parental health shocks. In this paper, we merge the Original Cohort and the Offspring Cohort of the Framingham Heart Study to study how adult offspring smoking behavior and subjective health assessments vary with elder parent smoking behavior and health outcomes. These data allow us to model the smoking behavior of adult offspring over a 30-year period contemporaneously with parental behaviors and outcomes. We find strong 'like father, like son' and 'like mother, like daughter' correlations in smoking behavior. We find that adult offspring significantly curtail their own smoking following an own health shock; however, we find limited evidence that offspring smoking behavior is sensitive to parent health, with the notable exception that women significantly reduce both their smoking participation and intensity following a smoking-related cardiovascular event of a parent. We also model the subjective health assessment of adult offspring as a function of parent health, and we find that women report significantly worse health following the smoking-related death of a parent. Copyright © 2015 John Wiley & Sons, Ltd.

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Tough Love and Intergenerational Altruism*

Cited by 20 publications

References 47 publications

Welfare-enhancing parental altruism and children’s habit formation

Welfare-enhancing parental altruism and children’s habit formation

Parenting With Style: Altruism and Paternalism in Intergenerational Preference Transmission

The Effects of Parental Health Shocks on Adult Offspring Smoking Behavior and Self‐Assessed Health

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